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Government to divest 10 percent stake in Engineers India

New Delhi: The government will divest an additional 10 percent paid-up equity in the state-owned Engineers India Ltd, it said here today. The stake dilution will bring the government's holding in the company to 80.4 percent, an official statement said. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs, presided over by Prime Minister Manmohan Singh. Before the public offering, Engineers India will take three steps, these being: Issue two bonus shares for every one share Split one share with a face value of Rs.10 into two with a face value of Rs.5 each Declare special dividend of 1,000 percent of the paid-up equity capital Engineers India is a public sector undertaking under the petroleum ministry and is engaged in providing engineering and technical services to petroleum refineries and other industrial projects. During the quarter ended on Sep 30, the company achieved a turnover of Rs.468.2 crore, an increase of 36 percent over the corresponding quarter the previous year, it says in a statement on its website. For the six months ended on Sep 30, Engineers India registered a turnover of Rs.859.63 crore, a growth of 44 percent over the corresponding period of last year. Its profits in the first two quarters this fiscal stood at Rs.199.59 crore, registering a growth of 1 percent over that of the previous corresponding period. According to the company, it has an order book position of over Rs.7,000 crore. (IANS)