CCEA to discuss EIL disinvestment proposal on Jan 10

The government is likely to discuss at CCEA meeting on January 10 the proposal for 10% stake sale in Engineers India Ltd (EIL), which may fetch around Rs 645 crore to the exchequer.

The Cabinet Committee on Economic Affairs (CCEA) is likely to take up on Thursday the 10% stake sale proposal of EIL as mooted by the disinvestment department, sources said.

The stake sale is expected to fetch the government about Rs 645 crore at the current market price. Shares of EIL today ended 2.11% higher at Rs 239.80 on the BSE.

The government currently holds 80.40% stake in EIL. In 2010, the government had last divested 10% stake through an FPO in the company, which is a leader in engineering consultancy.

For the July-September quarter of the current fiscal, EIL reported a net profit of Rs 161.24 crore, an increase of 10% over the corresponding period in 2011-12.

The stake sale in EIL is unlikely in the current fiscal. For the current year, the government has budgeted to raise Rs 30,000 crore by way of disinvestment.

So far this fiscal, the government has been able to realise over Rs 6,900 crore through stake sale in PSUs. Further stake sale of Oil India and NTPC is lined up for January and February.