Shares of Engineers India Ltd (EIL) have slipped to a new 52-week low after it was announced that the Ministry of Petroleum & Natural Gas has given its nod to the disinvestment of 10 per cent of the paid-up equity share capital by way of an offer for sale (OFS) through the stock exchanges.

The sale offer would bring the stake of the GoI to 70.401 per cent in the company.

In a statement to the stock exchanges, EIL said the Ministry of Petroleum & Natural Gas had cleared disinvestment of 10 per cent stake in the company (being 33,693,660 equity shares) by way of an “offer for sale”.

The paid-up capital of the company is Rs 168.46 crore and the face value of shares is Rs 5. The public shareholding in the company is 19.599 per cent, while the GoI’ stake is 80.401 per cent. While FIIs hold 4.46 per cent, DIIs’ stake is 7.80 per cent, while others hold 7.34 per cent stake.

However, the disinvestment of holding by the GoI failed to lift sentiment in the counter though the overall market was up substantially after the US Federal Reserve Chairman indicated no immediate winding up of Quantitative Easing in the US. The stock hit a fresh 52-week low of Rs 138.70, down by 60 paise, before recovering marginally to Rs 138.90 in the NSE this morning.

The stock has seen a sharp correction after touching a 52-week high of Rs 257.25 in the NSE on October 12 last year. The overall economic slowdown has reflected in the company's performance during the last year when the turnover fell to Rs 2,505.96 crore compared to Rs 3,698.82 crore in 2011-12.

Engineers India Ltd (EIL), which was established in 1965 to offer engineering and related technical services for petroleum refineries and other industrial projects, has now emerged as a design, engineering and turnkey contracting company for different industries