GAIL (India) Ltd announced it will invest ₹10,675 crore by subscribing to 106.75 crore equity shares of Talcher Fertilizers Limited at ₹10 per share through a rights issue. The investment comes as part of the joint venture’s capital expansion plans.

Talcher Fertilizers, established in 2015, is a joint venture between GAIL, Coal India Ltd, Rashtriya Chemicals & Fertilizers Ltd, and Fertilizer Corporation of India Ltd.

The company was set up to revive the Talcher unit through a coal gasification-based fertiliser plant in Odisha. GAIL India, Coal India, and Rashtriya Chemicals & Fertilizers each hold 33.333 per cent stakes, while Fertilizer Corporation of India holds 0.0002 per cent.

GAIL reported mixed Q4FY25 results with revenue rising 2.1 per cent year-on-year to ₹35,685 crore, but net profit nearly halved to ₹2,049 crore. However, EBITDA increased 13.3 per cent to ₹3,215 crore with margins expanding 90 basis points quarter-on-quarter to 9 per cent.

Citi expects regulatory catalysts in the gas sector with PNGRB likely to approve new transmission tariff guidelines and GAIL’s final tariff order expected soon. The brokerage identified IGL and GSPL as key beneficiaries alongside GAIL, while Gujarat Gas and MGL could face negative impact.

GAIL shares traded at ₹190.47 on NSE, down 0.55 or 0.29 per cent from the previous close of ₹191.02 at 1.10 pm.

Published on June 30, 2025