Government to disinvest 10 percent stake in Engineers India

Last Updated: Thu, Jan 10, 2013 10:10 hrs

New Delhi, Jan 10 (IANS) The union cabinet Thursday approved disinvesting 10 percent of the government stake in Engineers India Ltd. (EIL) through a follow-on public offering (FPO) this fiscal that could bring in Rs.800 crore.

The government now holds 80.40 percent equity capital in EIL. After the disinvestment, its shareholding in the company would come down to 70.40 percent.

EIL is a listed Mini-Ratna Central Public Sector Enterprise under the petroleum and natural gas ministry. It provides design, engineering and related project management and consultancy services for the hydrocarbon sector and the process plants industry in the country.

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

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

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