Anup Engineering Mulls Bonus Share Issue Amidst Acquisition Plans; Shares Dips

20 Mar 2024 , 01:02 PM

Anup Engineering shares experienced a 2% decline in morning trade on March 20 ahead of the company’s board meeting. The board meeting, scheduled for March 20, will focus on the proposal to issue bonus shares to existing shareholders. At the time of writing, Anup Engineering’s shares dropped to an intraday low of ₹3,260.60 apiece.

Bonus shares are distributed to shareholders at no additional cost as a reward for holding shares in the company. The determination of the record date for the bonus issue will be made by the board. This marks the company’s inaugural issuance of bonus shares, following previous dividend distributions.

Anup Engineering had distributed dividends of ₹7 per share from 2019 to 2021 and ₹8 per share in 2022. Additionally, it announced a final dividend of ₹15 per share in July last year.

The trading window for the company’s securities is currently closed in accordance with SEBI guidelines and the company’s code of conduct.

The closure will last until 48 hours after the outcome of the board meeting regarding the bonus share proposal is announced. Recently, the company finalized a definitive agreement to acquire 100% ownership of Mabel Engineering for ₹33 Crore.

Mabel Engineering specializes in engineering and fabrication of pressure vessels, reactors, and storage tanks. The acquisition is expected to be completed by May 31, 2024, aiming to enhance Anup Engineering’s product portfolio, capacity, and geographic presence.

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