EIL closed a Rs 2275, stronger by Rs 195 or 9.4%, on the BSE.
The stock had opened at Rs 2100 and touched a high of Rs 2408 and a low of Rs 2100 during the day.
A total of 8.69 crore shares were traded on the BSE as against the two-week average of 0.22 crore shares.
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(Updated at 1031am)
EIL has jumped on plans of divestment by the goverment. The company will come out with a follow-on public offer in the early part of FY11.
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The stock opened at Rs 2,100 and surged 15% to a new 52-week high at Rs 2,389. The stock is now trading with a 7.5% gain at Rs 2,236. Over 3.95 lakh shares have been traded on the BSE so far, as against the two-week daily average trade of 22,000 shares.
The government holds 90.40 per cent in the company. It can gain Rs 1,200 crore from a 10% stake sale of the company.
Engineers India (EIL) is one of the 60 companies identified by the Department of Disinvestment for selling government stake and the Cabinet Committee on Economic Affairs may consider a follow-on public offer.