Pune-based Kirloskar Oil Engines Ltd has informed that the company has entered into sale agreement with Eaton Industrial Systems Pvt. Ltd, Pune and Eaton Corporation, US, to hive off the valves division of its auto components business at MIDC, Ahmednagar and MIDC, Nashik, for a consideration not exceeding Rs 90 crore.

The agreement is subject to approval of the shareholders under Section 293 of the Companies Act, 1956 and additional approvals and consents as may be required.

Kirloskar Oil Engines Limited manufactures diesel engines and auto components in India. Its products include diesel engines, irrigation pumpsets, diesel generating sets, engine bearings, engine valves, and bimetal strips.

The company also offers generating sets of approximately 1 MW that run on heavy fuel oils. Its engine bearings and engine valves are used in automobiles and other engines. In addition, Kirloskar involves in the trade of oil and power generation, and power sales. It exports its products to Southeast Asia, Africa, and the Middle East.

The scrip of the company gained 4.50 per cent to Rs 111 at the close of Wednesday's trading with over 2,537,428 shares changing hands on the BSE. It touched an intraday high of Rs 114 and intraday low of Rs 108.