State-run Engineers India Ltd (EIL) today said its shareholders have approved the issue of bonus shares in the ratio of 2:1, or two shares for every share held.
The members of the company also approved the sub-division of shares of Rs 10 each into 2 shares of Rs 5 each, EIL said in a filing to the Bombay Stock Exchange. The meeting of the company's shareholders was held yesterday.
The bonus issue and stock-split is ahead of EIL's proposed FPO, through which the government would divest its 10 per cent stake in the company. Earlier, EIL had announced that it would issue a 1,000 per cent (Rs 100 per share) special dividend to the company's stakeholders.
EIL provides engineering and related technical services for petroleum refineries, oil and gas pipelines, petrochemical industries and chemical process plants.
Shares of EIL were quoted at Rs 2,447, up 0.84 per cent, in afternoon trade on the BSE.