The central government is planning to divest its 10 per cent stake in Engineers India through a follow-on public offer (FPO).

The government is planning to sell 10 per cent of its total shareholding of 80.4 per cent in Engineers India through the offer. About 35 per cent of the issue will be reserved for the retail investors in the stock markets in the country and it is likely that they will be offered the shares at a lower price than high net worth individuals or institutional investors.

For the second FPO of the company, it was invited proposals for engagement of book-running lead managers. The company has not announced the date of FPO for the stake sale yet but it announced that 5 per cent of the offer will be reserved for the employees of the company. The Department of Disinvestment (DoD) of the government is looking to appoint merchant bankers to manage the stake sale. It is estimated that the 10 per cent stake of the company might raise about Rs. 520 crore for the treasury.

The shares of Engineers India close at Rs. 156.10 on the Bombay Stock Exchange (BSE) on Monday.