Kirloskar Oil Board approves 1:1 bonus issue

Kirloskar Oil Engines Ltd has announced that the Board of Directors of the Company at its meeting held on July 19, 2007, inter alia, has transacted the following:

1. Approved the issue of bonus shares to the shareholders of the Company, in the ratio of one (1) equity share of Rs 2/- each, for every one (1) equity shares of Rs 2/- each, held by the shareholders, subject to the approval of the shareholders, in a general meeting to be convened for the same.

2. Approved the shifting of operations from Phursungi to Rajkot, for the manufacture of Small Engines.

3. The Company has entered into a Technology Licence Agreement with Waukesha Engines, a business unit of Dresser Inc. USA for exclusive manufacture and world-wide sale of diesel engines based generating sets. Under the agreement, the Company will also package, sell and service gaseous-fuelled engine based generating sets in India. The range of these 1500 rpm Diesel and Gas generating sets is 2.4 to 3.6 MW.

The stock was trading at Rs.365.45, up by Rs.32.85 or 9.88%. The stock hit an intraday high of Rs.386 and low of Rs.338. The total traded quantity was 251189 compared to 2 week average of 47312.

Source : Equity Bulls

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