EIL issue to open on July 27

Engineers India Ltd (EIL) will launch its follow-on public issue on July 27. The government plans to raise about Rs 1,200 crore by disinvesting 10 per cent stake in the company. The price band for the issue, open for retail investors till July 30, will be finalised a day prior to its opening.

The government-controlled company is offering 10 per cent of its post offer paid-up equity, amounting to 33,693,660 shares, in the follow-on issue. Of the total equity on offer, 0.22 per cent equity (712,000 shares) has been reserved for employees. Qualified institutional buyers will be offered up to 50 per cent of the net shares, with another 35 per cent being reserved for retail investors and 15 per cent for non-institutional portion of the issue.

After the public issue, the government holding in the company will fall to 80.4 per cent from the current 90.4 per cent. Earlier this year, the company had issued bonus shares in the ratio of 2:1. It had also gone for a stock split, with the face value of a unit being cut to Rs 5 from Rs 10 earlier.

ICICI Securities, HSBC, IDFC and SBI Capital Markets have been appointed as the book running lead managers for the issue.