Gail (India) hits 52-week high on 1:3 bonus issue; 85% interim dividend

The stock hit a new high of Rs 494, up 4% on the BSE in early morning trade.

Gail (India) hit a  fresh 52-week high of Rs 494, up 4% on the BSE in early morning trade after the company announced bonus issue of 1:3 (1 share for every three shares held) and 85% interim dividend.

“The board has recommended the issuance of one bonus share of Rs 10 for existing three equity shares of Rs 10/- each fully paid up, subject to the shareholders approval,” Gail (India) said in a statement.

The board has also approved payment of interim dividend for the FY 2016-17 @ 85% (Rs 8.5 per equity share) on the paid-up equity share capital of the Company, it added.

The company has fixed February 03, 2017 as the record date for the purpose of payment of interim dividend.

Gail (India) said the board has approved issuance of secured /unsecured, redeemable, non-convertible, taxable bond(s) upto Rs 750 crore with green shoe option upto 100% of issue size aggregating upto Rs 1,500 crore on a private placement basis, in one or more tranches.

In past six trading sessions, the stock has outperformed the market by gaining 13% after the company on January 19 said that the board of directors of the company will meet on January 25, 2017, to consider issuance of bonus shares and fund raising by issuance of bonds on private placement basis. The S&P BSE Sensex was up 2.2% during the period.