Engineers India Limited in which the Government of India holds 90.4% is likely to divest 10% holding. Yesterday the stock hit a circuit of 20% on news that prior to the divestment, the Government wants to extract its best from the stock and help in raising prices so that it can get a higher valuation.
It announced the following.
- Bonus of 2 shares for every share held
- Special onetime dividend of 1000% (one thousand per cent or Rs 100 per share.
- Splitting the face value from Rs 10 to Rs 5.
All these announcements which have not been reported to the exchange nor been announced in the form of a company board meeting have helped the stock gain a staggering 20% yesterday and the stock was locked at the upper circuit yesterday. This announcement also helped half a dozen other PSU stocks gain.
