Engineers India gets government nod for sale of 10 per cent equity
14 June 2010
The ministry of petroleum and natural gas has granted approval for a follow-on public offer involving sale of 10 per cent of the paid-up equity share capital of Engineers India Ltd (EIL).
Accordingly, the state-owned engineering consultancy firm will offer for sale 33,693,660 equity shares out of the ministry's total holding in the company, by way of an "offer for sale."
In a filing with the Bombay Stock Exchange (BSE), Engineers India Ltd said the oil ministry's decision follows approval of stake sale by the department of disinvestment of the ministry of finance.
"The ministry of petroleum and natural gas has granted its approval for the offer, involving disinvestment of 10 per cent paid-up equity share capital of the company out of its holding in the company," EIL said in the filing with BSE.
The government holds 90.4 per cent stake in EIL and at the current market price, the government is expected to raise nearly Rs1,200 crore through divestment of a 10 per cent stake in EIL.
EIL offers engineering consultancy services for petroleum, power and fertiliser companies.