The government is likely to invite by February-end financial bids for divestment of 51 per cent stake in Engineers India Ltd to a strategic partner along with management control.

According to sources in divestment ministry, the draft transaction documents, which include share holders and share purchase agreements (SHA and SPA), are likely to be finalised soon, paving the way for invitation of financial bids.

"One round of comments from the bidders has already been analysed and now the second round is pending. After that the transaction documents will be frozen," they pointed out.

The government, which currently owns 90.39 per cent stake in EIL, has decided to divest 51 per cent of its shareholding in favour of a strategic partner.

An additional 10 per cent stake would be offered to employees at one-third of market price or bid price whichever is lower.

Over half a dozen companies are eyeing stake in the engineering consultancy PSU including ONGC-BHEL combine, GAIL-L&T combine, Reliance, Essar, Tisco, Warburg Pincus, Jindal and Russia-based Sun Securities.

Meanwhile, the ministry of petroleum is believed to have proposed drawing Rs 310 crore (Rs 3.10 billion) special dividend from reserves of EIL.