Shares of Engineers India (EIL) fell as much as 5 per cent in the early trade on Thursday after the government said that it will sell 10 per cent of its stake in the company on Friday, which is likely to fetch over Rs 690 crore to the Exchequer.
At 9.36 am, Engineers India shares were trading 3.29 per cent down at Rs 198.65. The scrip opened at Rs 199.10 and had touched a high and low of Rs 199.10 and 195.30, respectively, in trade so far. Sensex was down 0.05 per cent at 24,481.01.
The disinvestment will take place through Offer for Sale (OFS) route, the company said in a regulatory filing.
“The promoter of Engineers India Ltd has submitted to BSE a copy of Notice of Offer for sale of 3,36,93,660 equity shares of the company of face value of Rs 5 each, representing 10 per cent of the total paid up equity share capital of the company, through the separate designated window of BSE Limited and the NSE,” the filing said.
In the past one year, the share price of EIL plummeted 8.06 per cent to Rs 205.40 on January 27, 2016. The benchmark index BSE Sensex fell 17.17 per cent during the same period.