Engineers India FPO subscribed nearly 12 times

The follow-on public offering of Engineers India (EIL), which closes on July 30, has received overwhelming response from investors. It has been subscribed 11.63 times so far, as per NSE's website.

The issue has received bids for more than 39 crore equity shares as against issue size of 334 lakh shares. The demand for issue was almost same at each price level of the price band of Rs 270-290 per share. It was the last day for application for qualified institutional investors, so their reserved portion got subscribed 23.43 times. However, July 30 was the last date for retail & non-institutional investors; their portion remained undersubscribed.

Brokerage houses are bullish on this issue. Elara Capital and Nirmal Bang has recommended subscribing the issue.

"It is an attractive opportunity, especially the price band at which it is Rs 270-290," Nilesh Shah, MD & CEO of Envision Capital said.

Even Prabhudas Lilladher sees more upward re-rating in EIL going forward.

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. The government aims to garner Rs 950 crore from the 10% stake sale.

Entire issue proceeds 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.