Engineers India FPO receives apathetic reaction on Day 1

The company is aiming business expansion in Africa and Latin America.

Government's 10% share sale in Engineers India through follow-on-public offer route received lukewarm response on the first day of issue today.

The issue received bids for over 6.33 lakh shares, accounting for 0.02% of over 3.36 crore shares on offer till 1600 hrs today.

Shares are being offered at a price band of Rs 145-150 apiece and the issue would remain open till February 10.

The sale of over 3.36 crore shares or 10% stake could fetch around Rs 500 crore at the upper end of the price band.

Shares of EIL touched a high of Rs 153.30 intra-day before closing at Rs 151.35 on BSE, up 1.61% from its previous close.

Engineers India CMD A K Purwaha told reporters that the company is eyeing business expansion in Africa and Latin America.

The company's order book as of September 2013 stood at Rs 3,232 crore.

The government holds 80.4% in the 'miniratna' public sector undertaking. In 2010, it had divested 10% of its stake in EIL through an FPO.