FPO gets bids for 5.22 crore shares
Bids were received for a total of 5.22 crore shares till 16:00 IST on day four of the bidding today, 11 February 2014, for the follow-on public offer (FPO) of state-run Engineers India (EIL). The FPO was subscribed 1.55 times, as per NSE data. The Government of India has put on block 3.36 crore shares of EIL through the FPO.
The FPO, which was supposed to close on Monday, 10 February 2014, was later extended till Wednesday, 12 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.
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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