EIL FPO oversubscribed 1.56 times

The follow-on offer of EIL has received good response from institutional investors.

The follow-on offer of the state-owned Engineers India Ltd (EIL) has received good response from institutional investors and the issue has been oversubscribed 1.56 times by the third day.

The offer,through which the government expects to raise up to Rs 977 crore,received bids for 5.24 crore shares as against 3.36 crore equities on offer,according to the NSE data at 1300 hrs.

EIL is offering equity shares of Rs 5 each in the price band of Rs 270-290 a piece. The FPO,which opened on July 27,closes on Thursday for institutional buyers and will close on Friday for others.

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By the end of the second day on Wednesday,the issue had been subscribed 51 per cent,with most of the bids coming in from the qualified institutional buyers (QIBs).

The government,which holds a little of over 90 per cent in EIL,is selling 10 per cent stake through the FPO.

The company is a leader in engineering consultancy and had an order book of Rs 6,236 crore as on March 31,2010. It operates majorly in hydrocarbon sector,offering end-to-end solutions in engineering and design.

In the secondary market at NSE,EIL share was quoting at 327.95,higher by 1.56 per cent,in the afternoon trade.

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ICICI Securities,IDFC Capital,SBI Capital Markets and HSBC Securities and Capital Markets India are the book running lead managers to the issue.

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