Shares of Anup Engineering Ltd were trading 8% lower on 20 March despite the Board of Directors of the company announcing a bonus issue of shares.

In its regulatory filing, the company said that the Board of Directors of the company has considered and approved the issue of bonus equity shares in the proportion of 1:1 of Rs 10 each fully paid up, held by the shareholders of the company.

1 new fully paid-up equity shares of Rs. 10 each will be issued for every 1 existing fully paid-up equity share of Rs. 10 each held by the eligible equity shareholders of the company as on the record date.

Bonus shares are additional shares issued by the company to its existing shareholders at no additional cost as a reward for holding shares in the company.

Earlier last week, the company announced that it would finalise a definitive agreement to acquire a 100% stake in Mabel Engineering for a total acquisition cost of Rs 33 crore. Mabel Engineering specialises in fabrication and engineering and provides solutions for storage tanks, pressure vessels, reactors, and similar products.

At 3:30 pm, the shares of Anup Engineering close 7.87% lower at Rs 3,014.55 on NSE.