Engineers India 'dividend' spikes stock

Engineers India is amongst the top gainers on the BSE currently. The stock at Rs.173.25 is up 4%, closer to its intra day high at Rs.174.80. Its 52-week high is at Rs.197.40.

The stock is up after the company yesterday announced that it has scheduled a Board meeting on 15 March 2014, to consider the declaration of interim dividend for the financial year ending 31 March 2014. The company has fixed 21 March 2014 as the Record Date, if the Board declares the interim dividend.

This payout is a part of the Govt’s arm twisting PSUs to dole out hefty interim dividends, wherein with the Govt being majority shareholder, it will gain enough to meet some its divestment target. The Govt is justifying these hefty payouts saying that this ‘unutilised’ cash reserves could thus be used for better leverage.