EIL files draft prospectus with Sebi for FPO

State-owned Engineers India has filed a draft red herring prospectus (DRHP) with market regulator Sebi for a public offering of 10 per cent government stake in the consultancy firm.

EIL filed the DRHP for its follow-on public offer (FPO) of 33,693,660 equity shares of Rs 5 each, the company said in a statement here.

"The offer would constitute a divestment of 10 per cent by the promoter (government stake) and all the proceeds shall go to the promoter," it said.

The FPO, likely to happen in the second half of July, will be through a 100 per cent book building process. ICICI Securities, HSBC Securities and Capital Markets (India), IDFC Capital and SBI Capital Markets are the Book Running Lead Managers (BRLMs) to the offer.

The government holds 90.4 per cent stake in EIL, which provides design and engineering services for petroleum, power and fertiliser companies.

At the current market price, the government is expected to raise about Rs 1,100-1,200 crore through the sale of 10 per cent stake in EIL.