Engineers India at lifetime high on 2:1 bonus

Engineers India is trading over 4% higher at Rs 2,512 after the company announced stock split and bonus issue plan.

The board of directors of the company at its meeting held on March 23 has approved the sub-division of face value of the share from Rs 10 to Rs 5 per share.

The board has also approved issue of bonus shares in the ratio of 2:1 (two bonus shares for every one held) by capitalization of general reserves of Rs 1,342 crore as on March 2009. The time the company gave a bonus was in the year 1999 when it doled out bonus shares in the ratio of 2:1.

Besides this, the board has also approved a payment of special interim dividend of Rs 100 per share (1000%) for 2009-2010 out of the free reserves of the company. The company has already obtained the approval of the Government in this regard.

The stock opened at Rs 2,456 and touched high of Rs 2,525 in intraday deals and has seen 101,000 shares change hands on the counter so far on the BSE.