The shares price of Engineers India Ltd (EIL) today hit two-year high on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The rise in EIL scrip today comes in the wake of the Cabinet Committee on Disinvestment's (CCD) announcement to privatise EIL by selling 51 per cent to a strategic partner and another 10 per cent to its employees at one-third the market price or that of the bid price whichever is lower.
The stock closed 11.10 per cent higher at Rs 262.75 on the BSE after hitting a high of Rs 279.25. The disinvestment agenda has proved instrumental in EIL's recent fortunes. EIL rose 37 per cent to Rs 236.50 on March 27, 2002, from Rs 172.90 on March 13, 2002. During the same period, volumes reached a high of 2.24 lakh shares on March 22, 2002, and a low of 3,649 shares on March 14, 2002.
Analysts said the market has already been anticipating the move. Earlier, the proposal to privatise EIL was submitted to the Cabinet secretariat, which was referred back to the disinvestment ministry with a suggestion to consult the administrative ministries concerned before submitting a fresh plan for the consideration of the CCD.
At present, the government alone holds 90 per cent stake in the company, while the remaining 10 per cent is in with public and financial institutions.
