Engineers India trades 1:1 ex-bonus; stock down over 5%

The stock dipped nearly 7% to Rs 156 on the BSE in early morning trade on profit booking

Engineers India dipped nearly 7% to Rs 156 on the BSE in early morning trade on profit booking as the stock trading ex-bonus on Friday in the ratio of 1:1.

The state-owned company has fixed January 02, 2017 as the record date for the purpose of ascertaining the eligibility of shareholders for issuance of bonus shares in the ratio of 1:1 i.e. 1 (one) new equity bonus share of Rs 5 each for every 1 (one) existing fully paid-up equity share of Rs 5 each held.

Since November 8, the stock had outperformed the market and rallied 24% after the Engineers India said that the board will meet on November 16, to consider the issue of bonus shares. During the period, the S&P BSE Sensex was down 4.4% till Thursday.

At 09:25 am; the stock was down 5.5% at Rs 158 as compared to 0.56% rise in the benchmark index. A combined 2.39 million shares have already changed hands on the counter in first 10 minutes of trade on the BSE and NSE.