Govt scouts for lead managers for EIL float

Taking forward the divestment process of state-run Engineers India forward, the government has invited applications from lead managers to advise it on the timing and other aspects of the follow-on public offer from the engineering consultancy provider.

"The government will select and appoint up to four merchant bankers with requisite experience in public offerings, who together will form a team and be called book running lead managers," the disinvestment department said in the tender notice. Interested parties can submit their proposals by May 10 to the department, it added.

The government proposes to offload 10 per cent equity in Engineers India in June which could fetch it Rs 1,000 crore. The government currently holds 90.40 per cent stake in the company.

The interested bidders should have handled at least one domestic equity issue of the size of Rs 200 crore or more during the last three financial years, the department said.

The lead managers would also advise the department on the regulatory norms and assist in securing approval and exemptions, wherever necessary, from various regulatory agencies such as the Sebi, stick exchanges and RBI. It would also ensure best returns to the government.

EIL provides engineering consultancy services mostly to oil and gas firms. This January, the PSU got Cabinet's nod to reduce the government's stake.