EIL offers equity to employees as part of disinvestment

PSU firm to sell part of govt stake at a discounted price of Rs 187.29 a share, will garner Rs 32 cr from the move

As part of the disinvestment process, state-owned Engineers India Ltd (EIL) will sell part of the government stake to its eligible employees at a discounted price of Rs 187.29 per unit, a move that will fetch about Rs 31.5 crore to the exchequer.

As per the Cabinet approval, the company has offered 16.8 lakh share of Rs 5 each for subscription, EIL said in a regulatory filing today.

"Action has been initiated by the company for sale of equity shares to the eligible employees by the government. The offer for sale shares shall remain open from September 15- 23," it said.

At the discounted price, the government will garner Rs 31.5 crore through offloading of shares.

In January, the government sold nearly 10 per cent stake in EIL through offer for sale. As a result, the government mobilised about Rs 640 crore.

The offer for sale of over 3.36 crore shares drew response from both institutional and retail investors, generating demand for over 8.56 crore shares.

"In accordance with the approval granted by CCEA on May 13, the government has offered 16,84,683 equity shares of face value of Rs 5 each to the eligible employee of EIL at discounted price of Rs 187.29 per equity share, or a 5 per cent discount to the cut off price of Rs 197.15 discovered through OFS of EIL carried out by government on January 29, 2016," it said.