DCM counter abuzz with DCM Engineering demerger talk

The market is abuzz with speculation that DCM is set to demerge its automotive engineering products manufacturing company, DCM Engineering, into a separate company. Market sources said one share of DCM Engineering would be issued against every share of DCM.

DCM Engineering, which is a 100% subsidiary of DCM, posted a turnover of 410 crore for the year ending 2010-11. DCM's company secretary declined to comment. An email query sent to the company on this matter remained unanswered till the time of going to press. Shares of DCM, which closed up 0.6% at 95.60 on Tuesday, have risen over 17% in a month.

Contributed by Rajesh Mascarenhas