GAIL, Engineers India plan to issue bonus shares worth ₹3,000 Crore to Govt

2 Feb 2024 , 07:21 PM

According to the budget, GAIL and Engineers India Ltd (EIL) would provide the government with ₹2,940 Crore worth bonus shares for the current fiscal year.

According to updated budgetary projections, Gail’s bonus shares to the government are valued at ₹2,840 Crore, while EIL’s are valued at ₹99 Crore. Stock market filings do not disclose the two businesses’ bonus issuing choices for this year. The last time Gail issued bonus shares was in September 2022.

Companies offer bonus shares to current owners in proportion to their holdings, and shareholders do not pay for them. The government owns 51.9% of GAIL and 51.3% of EIL. GAIL’s shares, valued at ₹1,14,000 Crore, have increased by 80% in the past year. EIL, an engineering firm, has virtually tripled its market value in a year, currently at ₹13,300 Crore.

GAIL’s shares closed 2.76% lower at ₹178.50, against its previous close of ₹173.70 on NSE. The counter touched a new 52-week high of ₹180 in today’s session. 

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