Engineers India slips as OFS commences

Engineers India fell 0.90% to Rs 192.30 at 10:32 IST on BSE as the Offer for Sale by the Government of India to sell a 10% stake in the company through the stock exchanges mechanism began at 9:15 IST today, 29 January 2016.

Meanwhile, the BSE Sensex was up 84.18 points, or 0.34%, to 24,553.75.

On BSE, so far 36,000 shares were traded in the counter, compared with an average volume of 81,691 shares in the past one quarter. The stock hit a high of Rs 193.90 and a low of Rs 191.10 so far during the day. The stock hit a 52-week high of Rs 252 on 1 January 2016. The stock hit a 52-week low of Rs 157.90 on 25 August 2015. The stock had underperformed the market over the past one month till 28 January 2016, sliding 14.53% compared with 6.01% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 3.07% as against Sensex's 9.51% fall.

The mid-cap company has an equity capital of Rs 168.47 crore. Face value per share is Rs 5.

By 10:25 IST, bids were received for a total of 5.80 lakh shares for the Offer for Sale (OFS) of Government of India (GoI) in Engineers India through the stock exchanges mechanism, as per data from the stock exchanges. The OFS commenced at 9:15 IST and shall close at 15:30 IST today, 29 January 2016. The floor price for the OFS has been fixed at Rs 189 per share. Retail investors will get 5% discount to the cut-off price.

GoI, a promoter of Engineers India, announced after market hours on 27 January 2016, that it will pare its stake in the company through an OFS via the separate window provided by the stock exchanges for the purpose. GoI is offering 3.36 crore shares of EIL, constituting 10% of the company's equity, through the stock exchanges mechanism today, 29 January 2016. The floor price for the OFS was fixed at Rs 189 per share after market hours yesterday, 28 January 2016. GoI currently holds 69.37% stake in EIL (as per the shareholding pattern as on 31 December 2015).

Net profit of Engineers India rose 18.22% to Rs 69.50 crore on 15.33% rise in net sales to Rs 450.54 crore in Q2 September 2015 over Q2 September 2014.

State-run Engineers India provides engineering consultancy and EPC services, mainly to the oil and gas and petrochemical industries. The company has also diversified into sectors like infrastructure, water and waste management, solar and nuclear power and fertilizers to leverage its strong technical competencies and track record.

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