Cabinet approves 10% stake sale in Engineers India

The government aims to raise Rs 30,000 cr from share sale in state-run companies by FY13-end

The government today approved 10% stake sale in Engineers India Ltd (EIL), which may fetch the government around Rs 800 crore.

"We expect to get around Rs 800 crore at current prices," Finance Minister P Chidambaram told reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA).

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

The stake will take place this fiscal, the minister said.

EIL scrip was trading at Rs 229.80 on the BSE, down 3.73% from its previous close.

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

The government has proposed to raise Rs 30,000 crore by way of disinvestment in 2012-13.

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