Maithan Alloys Acquires 0.01% Stake in GAIL (India) Ltd

On May 29, 2024, Maithan Alloys Limited informed in a stock exchange filing that the company had acquired equity shares of a listed entity, GAIL (India) Ltd, through the Stock Exchange.

Details of the Acquisition

The shares of Gail India Ltd were acquired through the stock exchange and formed part of the investment of Maithan Alloys Limited with a view to reaping the long-term or short-term investment benefits. Maithan Alloys Limited stated that it does not intend to acquire control, whether directly or indirectly, of the management of the Target Entity.

The company stated that the acquisition does not constitute a Related Party Transaction, and neither the promoter nor the promoter group is interested in the acquired entity.

The acquisition was executed through cash consideration, with a total acquisition cost of ₹20.03 crore. This transaction occurred on May 28, 2024.

On May 28, 2024, Maithan Alloys Limited acquired a 0.01% shareholding, equivalent to 9,96,700 shares, in GAIL (India) Ltd, bringing the total shareholding to 0.07%, which is 4,830,700 shares.

About the Acquired Entity 

GAIL (India) Ltd belongs to the Gas Transmission/Marketing industry.

The company is the largest state-owned natural gas processing and distribution company in India. GAIL has a diversified business portfolio and interests in sourcing and trading natural gas, producing LPG, Liquid hydrocarbons and petrochemicals, transmitting natural gas and LPG through pipelines, etc. GAIL also has Distribution interests in India and overseas in Oil and Gas Blocks.

The company has a presence in India, the USA, Singapore, Myanmar and Russia.

GAIL (India) Ltd reported a turnover of ₹1,44,302 crore in FY 2023, ₹91,646 crore in FY 2022 and ₹56,738 crore in FY 2021.

Recently, Maithan Alloys Limited also acquired 0.003% of the shareholding in Hindustan Aeronautics Ltd, totalling the entire shareholding to 0.038%, which is 2,53,118 shares. The total cost of this acquisition was ₹11.76 crore.

About Maithan Alloys Limited

Maithan Alloys manufactures and exports three primary bulk ferro alloys: silico manganese, ferro silicon, and ferro manganese. The company also actively generates and supplies wind power and operates a captive power plant.

On May 30, 2024, the share price of Maithan Alloys Ltd opened at ₹1,215.00, touching the day’s high at ₹1,242.95, as of 12:02 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.