GAIL India to invest ₹10,675 crore in Talcher Fertilizers via rights issue

State-owned gas utility GAIL (India) Ltd on Friday (June 27) said it will invest ₹10,675 crore by subscribing to 106.75 crore equity shares of Talcher Fertilizers Limited at ₹10 each, as part of a rights issue.

Talcher Fertilizers, a joint venture between GAIL, Coal India Ltd (CIL), Rashtriya Chemicals & Fertilizers Ltd (RCF) and Fertilizer Corporation of India Ltd (FCIL), was set up in 2015 to revive the Talcher unit through a coal gasification-based fertiliser plant in Odisha.

GAIL India, Coal India, and Rashtriya Chemicals & Fertilizers each hold a 33.333% stake in Talcher Fertilizers, while Fertilizer Corporation of India holds a minimal 0.0002%.

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The rights issue is uniformly offered to all shareholders in proportion to their holdings and does not qualify as a related party transaction. The transaction is expected to be completed on or before July 9, 2025.

Dull Q4

GAIL’s revenue for the quarter increased 2.1% over last year to ₹35,685 crore from ₹34,937 crore. The figure was below the CNBC-TV18 poll of ₹37,042 crore. Net profit for the period nearly halved to ₹2,049 crore and was marginally below expectations of ₹2,153 crore.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter increased by 13.3% year-on-year to ₹3,215 crore, which was in line with expectations of ₹3,260 crore. Margins expanded by 90 basis points from the previous quarter to 9% from 8.1% in December, meeting expectations of CNBC-TV18 poll’s 8.8%..

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Shares of Gail (India) Ltd ended at ₹190.95, up by ₹4.10, or 2.19%, on the BSE.