Engineers India hits new high on bonus-cum-split plans

Engineers India, has announced that the company's board will meet on March 23 to consider the proposal of issue of bonus share and stock split.

The stock opened at Rs 2,385 and soared to a high of Rs 2,424. The stock is now trading at Rs 2,375, up 2% from its previous close. The counter has clocked volumes of 59,000 shares on the BSE.

The stock has more than doubled from Rs 1,132 on November 3,2009 to Rs 2,342 on January 19,2010. The stock is in the consolidation mode since that.

The company will issue bonus shares by capitalising free reserves of the company. The company will also split Rs 10 paid-up equity share into lower denomination.

Earlier, in 1999, the company had issued bonus shares in the ratio of 2:1 (two bonus shares for every one equity share held).

The majority stake 90.4% stake in the company held by the promoter – Government of India. Institutional investors, led by insurance companies hold 3.6% stake, followed by mutual funds (1.6%) and foreign institutional investors (1.2%). Individual shareholders and bodies corporate hold, the remaining 3.2% stake in the company at the end of December 2009.