The Gas Authority of India Ltd's (Gail) first offer for Global Depository Receipts (GDR) has closed at a price of US$ 9.67 each, with each GDR representing six underlying shares. According to company sources, the top investors in the issue were corporates with an interest in oil and gas. This has been reported by a leading national daily.
Enron, the international oil and gas major, has reported picked up a 5% stake through the GDRs. The interest in Gail is apparent. With the government having decided to offload its holding and finally pass on the management of a number of public sector units to strategic investors, companies looking for a back door entry into the Indian market would have surely considered investing in GDR. Now, with Enron having picked up a stake of 5%, a closer working relation between the two is possible in the future.
The mop up from this divestment is likely to amount to Rs 11 bn. This will come as a welcome relief to the government, which is likely to overshoot the fiscal deficit target of 4% by a wide margin. Whether the success of this issue will trigger others is yet to be seen and cannot be said with certainity. But a positive outcome would definitely alleviate the concerns regarding the fiscal situation of the country.
GAIL (India) Ltd has announced results for the quarter ended June 2016. The company has reported 14.6 % year on year (YoY) decline in sales, while bottom-line grew 244% YoY. Here is a brief summary of the results.
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