EIL declares 2 for 1 bonus; Rs100 interim dividend

The board of state owned Engineers India Limited (EIL) today approved the issue of bonus shares and a special interim dividend for 2009-10 at Rs100 per share of the face value of Rs10.

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 (BSE).
 
There were earlier reports on 17 March that the engineering solutions provider is planning a bonus issue and stock split, which catapulted the company's stock on the BSE to Rs.2330.15 on that day.

With today's announcement by the board, shares of EIL jumped 3.24 per cent to touch its all time high level of Rs2,474 on BSE, and closed at Rs2,426.20.

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.

It is one of strongest in the public sector with cash reserves of Rs1,320 crore as on March 31, 2009.