EIL board approves bonus issue, special dividend

State-run Engineers India today said its board has approved the issue of bonus shares and a special dividend of Rs 100 per share (or 1,000 per cent).

The board of directors also approved the sub-division of shares in the ratio of 1:2, that is one share Rs 10 will be divided into two shares of Rs 5 a piece, EIL said in a filing to the Bombay Stock Exchange.

The board has approved the payment of special interim dividend for 2009-2010 at Rs 100 per share of the face value of Rs 10, the filing said.

The company has already obtained the approval from the government in this regard.

Besides, the board has also approved the bonus issue of shares in ratio of 2:1, that is for every one share, two bonus shares shall be issued.

The bonus issue, special dividend and the stock-split is ahead of EIL's proposed FPO through which the government would divest its 10 per cent stake in the company.

EIL provides engineering and related technical services for petroleum refineries, oil and gas pipelines, petrochemical industries and chemical process plants.

Shares of EIL today jumped 3.24 per cent to touch its all time high level of Rs 2,474 on BSE. The scrip settled at Rs 2,426.20, higher by 1.25 per cent.