GAIL India shares soared more than 5 per cent on the BSE in a subdued market on the news that the country’s largest gas distribution company will on Friday consider buyback of shares. The shares touched an intra-day high of Rs 143.50, up 5.7 per cent in early trading on the back of the announcement and at 10:20 am, the shares were trading at Rs 141.50, up 3.94 per cent, on the BSE.
The board will meet on January 15 to consider share buyback as also payment of interim dividend for the fiscal year ending March 2021, Gail India said in a regulatory filing to the stock exchanges, but did not give any details.
A buyback, also known as a share repurchase, means that a company buys its outstanding shares to reduce the number of shares available in the open market.
The BSE Sensex was at 49,126.72, lower by 145.02 points or 0.29 per ent and the NSE Nifty was at 14,464.35, down 20 points or 0.14 per cent at the time.