Engineers India Ltd has received the Ministry of Petroleum & Natural Gas approval for divesting 10 per cent stake through a follow-on offering.
"Engineers India Ltd has informed BSE that in pursuance to the decision of the Ministry of Finance, Department of Disinvestment, Government of India, the Ministry of Petroleum & Natural Gas has granted its approval to the offer, involving disinvestment of 10% of Paid-up equity Share Capital of the Company (being 33,693,660 Equity Shares) out of its holding in the Company, by way of an 'offer for sale' in the proposed Offer of the Company," said the company in a stock exchange filing on Monday.
The public sector entity is expected to offer a 5 per cent discount to retail investors in the issue that is likely to follow the book-building route. The government intends to raise nearly Rs 1,000 crore from the FPO.
Shares of Engineers India gained 1.76% on Monday to trade at Rs 321.35.