Why McNally Bharat Engineering Shares Surged 20% Today

McNally Bharat Engineering shares surged as much as 20 per cent to hit intraday high of Rs 94.90 on Wednesday after the company raised Rs 100 crore equity capital from EMC and Williamson Magor Group (existing promoter) at Rs 100 per share, 26 per cent higher than its Tuesday's closing price.
  In a release to Bombay Stock Exchange, McNally Bharat Engineering said that it has entered into an agreement with "EMC and Williamson Magor Group to enable an additional equity investment of upto Rs 100 crore as primary equity capital into Mc Nally." Also as per the Sebi guideline, there will also be an open offer by EMC and Willianson Magor Group for upto 26 per cent of equity capital of the company.
  The fund raising of Rs 100 crore would be done through a preferential allotment of 1 crore new shares to EMC at a price of Rs 100 per share, the company said in the release.
  Both Mc Nally and EMC are established players in engineering and engineering, procurement and construction (EPC) sector in India.
  EMC had invested Rs 50 crore in March 2015 in McNally through its group company MKN Investment for a 12.5 per cent stake in the company. After the latest round of fund infusion, EMC's holding along with MKN Investment in McNally will rise to 29.64 per cent.
  McNally Bharat Engineering shares ended with 20 per cent gains at Rs 94.90 apiece.