Oct 19, 2012 11:25 PM IST | Source: CNBC-TV18

FinMin proposes 10% stake sale in EIL via FPO

The finance ministry has proposed a 10% stake sale in Engineers India or EIL via a FPO. In fact, the ministry has sent a proposal on this to the Cabinet Committee on Economic Affairs (CCEA). The finance ministry has also suggested a 5% discount for retail investors.

FinMin proposes 10% stake sale in EIL via FPO

The finance ministry has proposed a 10% stake sale in Engineers India or EIL via a FPO. In fact, the ministry has sent a proposal on this to the Cabinet Committee on Economic Affairs (CCEA). The finance ministry has also suggested a 5% discount for retail investors.

The oil ministry, sources say, has agreed to the EIL disinvestment but with one condition. The oil ministry wants EIL FPO to be only after the government disinvests stake in two other PSUs. The finance ministry is hoping to rake in Rs 800 crore from the EIL FPO.

The government plans to sell 3.36 crore shares via the FPO after which its holding in EIL will be at 70.4%. The CCEA proposals says EIL’s FPO will be out within six months of SEBI approval.

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