Engineers India FPO subscribed 13.36 times

Published on Fri, Jul 30, 2010 at 17:21 | Updated at Sat, Jul 31, 2010 at 10:47 | Source : Moneycontrol.com

The follow-on public offer of Engineers India (EIL), which closes on Friday, has received tremendous response from investors. It has subscribed 13.36 times, as per NSE's website.

The demand for the issue was almost same at each price level of the price band of Rs 270-290 per share. Qualified institutional investors' (QIBs) reserved portion got subscribed 23.43 times.

Engineers India FPO subscribed 13.36 times

Retail investors' portion got subscribed 2.99 times, non-institutional investors 5.85 times and employee portion subscribed 0.57 times.

Sources inform CNBC-TV18 that the next PSU issue is Coal India, the IPO of which is likely in October.

Also, the Shipping Corp will start inviting bids from investment banks next week, sources say.

EIL is an engineering consultancy company providing design, engineering, procurement, construction and integrated project management services, principally focused on the oil and gas and petrochemicals industries in India and internationally.

Retail investors will get a 5% discount on the issue price, which will be discovered through the book building process. Entire issue proceeds (around Rs 950 crore) will get by government against 10% dilution through this public offer and their shareholding will be 80.40% post issue.

ICICI Securities Ltd, HSBC Securities & Capital Markets India Pvt Ltd, IDFC Capital Ltd and SBI Capital Markets Ltd are book running lead managers to the issue. Link Intime India Pvt Ltd is the registrar.