The Cabinet Committee on Economic Affairs on Wednesday approved the disinvestment of 15 per cent paid-up equity in NBCC India Ltd out of Government’s 90 per cent shareholding, Law Minister Ravi Shankar Prasad said.

The divestment, which is expected to raise ₹1,706 crore, will be through the Offer For Sale (OFS) route.

“However, the actual realisation amount will depend upon the market conditions and the investor interest prevailing at the time of actual disinvestment,” an official statement said.

It has also been decided to allot additional shares to the eligible and willing NBCC employees at a discount of 5 per cent to the issue/discovered (lowest cut off) price of OFS.

The issue and subscribed equity capital of the company as on March 31, 2016 was ₹120 crore.

NBCC India is under the administrative control of the Ministry of Urban Development and has interests in construction, engineering and project management consultancy services.

The company is currently engaged in the re-development of East Kidwai Nagar, New Delhi, which is a ₹5,000-crore project.

The Cabinet had last week cleared a proposal for redevelopment of colonies in Sarojini Nagar, Netaji Nagar, Nauroji Nagar by NBCC India Ltd.

The company’s shares dropped 10.72 per cent to ₹229.80 on the BSE on Wednesday.