Engineers India FPO sees dull initial response

FPO gets bids for 6.33 lakh shares

The follow-on public offer (FPO) of state-run Engineers India (EIL) was subscribed just 0.02% on day one of the bidding for the FPO today, 6 February 2014. The FPO received bids for 6.33 lakh shares till 16:00 IST on day one of the bidding for the FPO today, 6 February 2014, compared with 3.36 crore shares on offer, as per NSE data.

The FPO closes on 10 February 2014. The price band for the FPO has been fixed at Rs 145 to Rs 150. A discount of Rs 6 per share on the final issue price discovered through the book-building route will be offered to retail investors and employees of the company.

After the successful completion of the FPO, the government holding in the company would fall to 70.4%. The government's stake in the company stood at 80.4% as on 31 December 2013.

Engineers India (EIL) is one of India's leading engineering consultancy and EPC companies focused primarily on hydrocarbon sector. Of late the company has also extended its consultancy and turnkey services to other sectors including fertilizers, non-ferrous mining and metallurgy, power, water, and wastewater treatment projects as well as other infrastructure projects. EIL is a zero-debt and cash-rich company with strong operating cash flow. Cash and bank balance at end of Sep 2013 was Rs 1868.92 crore.

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