Engineers India edges higher as CCEA approves closure of wholly owned subsidiary

Engineers India rose 0.11% to Rs 233.10 at 9:35 IST on BSE after the Cabinet approved the proposal of the Ministry of Petroleum & Natural Gas to close Engineers India Asia Pacific, a wholly owned subsidiary of the company.

The announcement was made after market hours yesterday, 10 December 2014.

Meanwhile, the BSE Sensex was down 76.89 points, or 0.28%, to 27,754.21.

On BSE, so far 4,853 shares were traded in the counter, compared with an average volume of 1.33 lakh shares in the past one quarter.

The stock hit a high of Rs 235 and a low of Rs 232.95 so far during the day. The stock hit a 52-week high of Rs 331 on 3 July 2014. The stock hit a 52-week low of Rs 142.10 on 4 February 2014.

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi on Wednesday, 10 December 2014,, has approved the proposal of the Ministry of Petroleum & Natural Gas to close Engineers India (EIL) Asia Pacific Senderian Berhad (EILAP SDN BHD), a 100% subsidiary of Engineers India (EIL). The closure will be as per Malaysian Laws with regard to winding up. Since the company is unable to secure any business from 2004 despite making efforts for it, the continued existence of EILAP shall not serve any purpose and its closure would obviate the avoidable recurring expenditure incurred for maintaining the company.

Engineers India's net profit fell 47.4% to Rs 58.79 crore on 13.4% fall in total income to Rs 474.57 crore in Q2 September 2014 over Q2 September 2013.

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