Engineers India Shares plunged more than 4% during the trade session on 25 August after the company’s board of directors approved the acquisition of a 4.37% stake in Numaligarh Refinery.

The company will subscribe to 1.26 crore equity shares at Rs 110 per share in a rights issue of the Guwahati-based Numaligarh Refinery.

The cost of the said acquisition works out to about Rs 138 crore.

The price of the acquisition is similar to what the Assam government was set to pay for acquiring the stake in Numaligarh Refinery in June 2023.

Engineers India is an engineering consultancy company that provides procurement, engineering, design, construction and integrated project management services for petrochemical, oil and gas, infrastructure, water and waste management, fertiliser, and solar and nuclear power sectors.

The company posted a robust quarterly report for the April-June quarter with a 114.35% YoY increase in net profit at Rs 138.93 crore, whereas a 0.43% YoY increase in net sales to Rs 818.27 crore for the quarter under review.

On the operating front, the company’s EBITDA for Q1FY24 was 120.33%, up to Rs 164.74 crore.

At 3:30, the shares of Engineers India closed at Rs 157.80 or 2.23% below its previous close on NSE.