The cabinet committee on economic affairs (CCEA) today approved the divestment of 10 per cent paid-up equity in Engineers India Ltd (EIL), to raise around Rs800 crore.
"We expect to get around Rs800 crore at current prices," finance minister P Chidambaram said after the CCEA meeting.
The divestment will be made through a prospectus-based further public offer (FPO), in the domestic market as per SEBI Rules and Regulations.
The stake will take place this fiscal, the minister said.
Government of India at present holds 80.40 per cent of the equity capital of Engineers India. Post divestment, the government's shareholding in the company would come down to 70.40 per cent.
The paid-up equity capital of the company as on 31 March 2012 stood at Rs168.47 crore.