Street signs: Gail buyback, Medical device makers to gain, and more

Benefiting from Gail buyback

Gail (India) has announced a Rs 1,083-crore share repurchase programme. The state-owned firm will buy back 57 million shares at Rs 190 apiece, a 17 per cent premium to Gail’s last closing price of Rs 162. Brokerages are advising their retail clients to buy shares of Gail to take advantage of the arbitrage opportunity. According to one estimate, the acceptance ratio for retail investors in the buyback is expected to be around 15-20 per cent. In other words, between 15 and 20 shares can get accepted for every 100 shares tendered by small shareholders. In the run-up