Apply for Engineers India follow-on offer: Nirmal Bang

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Apply for Engineers India follow-on offer: Nirmal Bang

The follow-on public offer of state-run Engineers India (EIL) has opened for subscription.

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The follow-on public offer of state-run Engineers India (EIL) has opened for subscription. Nirmal Bang has recommended subscribing this public issue, in its research report.

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. The price band for the 334 lakh shares issue, which closes on July 30, is at Rs 270-290 per share.

The report says, "EIL has posted revenue and net profit CAGR of 63% and 49% respectively in the last three years. EIL has order book position of Rs 6236 crore executable over 2.5-3 years, thus gives earning visibility of 2-3 years. Apart from this the capex planned by oil PSU are quite encouraging. EIL is a premier engineering consultancy
and turnkey contracting company with vast experience and proven track record. With its unmatched technical capabilities, past experience, and focus on R&D activities, EIL is best placed to benefit from the capex of these segments."

"We recommended subscribe to EIL on basis of (1) EIL has a proven track record of project implementation, (2) strong financials, zero debt on balance sheet (3) robust order book, (4) diversifying in to new growth areas," according to report.

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To read the full report click on the attachment