Engineers India FPO subscribed 2.83 times

FPO gets bids for 9.53 crore shares

The follow-on public offer (FPO) of state-run Engineers India (EIL) was subscribed 2.83 times. The FPO closed on Wednesday, 12 February 2014. The FPO received bids for a total 9.53 crore shares, as per NSE data. The Government of India had put on block 3.36 crore shares of EIL through the FPO.

The portion reserved for retail individual investors was subscribed 2.48 times. The FPO received weak response from non-institutional investors (NII). The portion reserved for NII was subscribed 0.23 times. The category of NII includes subscriptions from corporates and individuals other than retail individual investors.

The portion reserved for institutional investors i.e. Qualified Institutional Buyers (QIBs) was subscribed 3.93 times. Category wise subscription data showed that foreign institutional investors (FIIs) put in bids for a total of 1.38 crore shares, compared with 1.65 crore shares reserved for the QIB category as a whole. Domestic financial institutions, which includes banks, financial institutions and insurance companies put in bids for a total of 4.68 crore shares. Mutual funds put in bids for a total of 45.09 lakh shares.

The FPO, which was supposed to close on Monday, 10 February 2014, was extended till Wednesday, 12 February 2014.

The price band for the FPO was 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.

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 September 2013 was Rs 1868.92 crore.

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