Shares of GAIL India rallied over 5 percent in early trade on Thursday after the company announced that its share buyback will open on February 25. GAIL stock was the biggest gainer on the Nifty50 index.

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In a release issued on Wednesday, GAIL said that it will open its buyback on February 25 for up to 6,97,56,641 fully paid-up equity shares of face value Rs 10 each, representing 1.55 percent of the total number of equity shares in the issued, subscribed and paid-up equity share capital of the company.

The company will buy back shares from all the existing shareholders/ beneficial owners of equity shares of the company as on the record date i.e. Thursday, January 28, 2021 on a proportionate basis, through the “tender offer” process at a price of Rs 150 per equity share for an aggregate consideration not exceeding Rs 1,046.35 crore, the company said.

The share buyback will close on March 10.

The funds for the buyback will be met out of internally-generated cash resources of the company, GAIL added.

At 9:55 am, the shares of GAIL India were trading 4.17 percent higher at Rs 139.95 apiece on the BSE as compared to a 0.05 percent loss on the benchmark Sensex.

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