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Engineers India share sale subscribed 2.54 times

State-run Engineers India Ltd’s stake sale sailed through comfortably on Friday with the issue being subscribed 2.54 times, stock-exchange data showed.

The offer for sale of about 3.37 crore shares, or a 10 per cent stake, by the government received bids for about 8.54 crore shares.

At the floor price of Rs 189 a share, the government is set to raise Rs 637 crore (about $94 million) from the stake sale. 

The portion reserved for retail investors (67.39 lakh shares) was subscribed 3.91 times, with the highest number of bids coming in at the floor price. Retail investors are eligible for a five per cent discount on the final cut-off price of the issue.

Non-retail investors bid for 2.19 times the 2.69 crore shares allotted to them. Bids were received in the range of Rs 189-Rs 190.

The government’s stake in EIL will fall to about 59 per cent after the issue.

The engineering firm is the fifth state-run company where the government has sold a stake this fiscal year as part of its disinvestment programme. It earlier sold stakes in Indian Oil Corp, Rural Electrification Corporation, Power Finance Corporation and Dredging Corp.

Excluding Engineers India, the government has raised only Rs 12,700 crore through disinvestment this fiscal year so far against the budgeted target of Rs 69,500 crore. Of this, Rs 41,000 crore was to come from minority stake sale in state-run firms and Rs 28,500 crore from strategic stake sales.

SBICAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities India Private Ltd managed the share sale.

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