The government might be planning to sell its 10 per cent stake in Engineers India Ltd (EIL) through an open public offer.

The Cabinet Committee on Economic Affairs (CCEA) approved the proposal to divest the stake in the company. The government is expecting to generate as much as Rs 800 crore this fiscal through the sale of stake in the consultancy giant.

"We expect to get around Rs 800 crore at current prices," Finance Minister P Chidambaram said following the meeting of the CCEA. He added that the stake will be sold through a Further Public Offering (FPO).

Mr. Chidambaram expressed confidence that the stake sale might happen within this financial year. The government holds 80.40 per cent stake in EIL at present and following the stake sale, the governments in the company would come down to 70.40 per cent. The company's paid up equity capital as on March 31, 2012 was recorded at Rs 168.47 crore.

The government had divested a 10 per cent stake through an FPO in EIL in 2010. Mr. Chidambaram also clarified that the `mini ratna' company is already compliant with market regulator Sebi's public holding norms and is not among the top 100 companies in market capitalization.