Govt fixes Rs 189/share as floor price to sell EIL's 10% stake

The government today fixed the floor price of Rs 189 per share for selling its 10 per cent shareholding in Engineers India Ltd that would fetch it about Rs 637 crore.
The floor price fixed for sale of 3.36 crore shares through an offer of sale (OFS) on Friday, is at a discount of 2.4 per cent to the closing price of Rs 194.05 on BSE today.
In a regulatory filing, EIL said: "The Floor Price for the Sale in terms of SEBI OFS Circular shall be Rs 189 per equity share."
At this price, the government will get Rs 637 crore if the issue if fully sold.

OFS will commence at 0915 hours on January 29 and close on the same day at 1530 hours.
EIL is a public sector company under the Ministry of Petroleum and Natural Gas that provides engineering and construction consultancy particularly in the hydrocarbon space.

The government has so far raised only Rs 12,700 crore through PSU disinvestments in the current fiscal against the budgeted target of Rs 69,500 crore.
Of the target set in February last year, Rs 41,000 crore was to come from minority stake sale in PSUs and another Rs 28,500 crore from strategic stake sale.
Due to volatile stock markets, the government has been able to sell stake only in four PSUs -- Indian Oil, REC, PFC and Dredging Corp.