State-run Engineers India (EIL) rose 2.55% to Rs 108.45 after media reported that the company has dropped its plan to acquire another government-owned entity, Projects & Development India.
The report added that the merger was called off as certain conditions for the acquisition were not met.
In September last year, EIL informed that its board considered acquisition of 100% paid-up share capital of Projects and Development India (PDIL) from President of India, acting through the Ministry of Chemicals & Fertilizers and given the approval of bidding for the same by way of share acquisition route.
The government in October 2018 had invited bids from EIL or other similarly placed PSUs to buy out its 100% shareholding in consultancy firm PDIL.
PDIL is a Mini Ratna, Category-I, Government of India undertaking under Department of Fertilizers. It is a premier consultancy and engineering organization.
EIL provides design, engineering, procurement, construction, and integrated project management services primarily for oil and gas and petrochemical industries. The Government of India owned 52% stake in EIL (as on 30 June 2019).
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Meanwhile, the S&P BSE Sensex was up 65 points or 0.18% to 36789.72.
On the BSE, 1.46 lakh shares were traded in the EIL counter so far compared with average daily volumes of 2.02 lakh shares in the past two weeks. The stock hit a high of Rs 109.95 and a low of Rs 106.2 so far during the day.
The stock hit a 52-week high of Rs 139.45 on 04 Sep 2018. The stock hit a 52-week low of Rs 92.7 on 06 Aug 2019.
On a consolidated basis, Engineers India's net profit rose 40.51% to Rs 125.73 crore on a 27.43% increase in the net sales to Rs 742.66 crore in Q1 June 2019 over Q1 June 2018.
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