The issue of Engineers India Ltd. (EIL) which closed yesterday was oversubscribed 2.83 times. Earlier, the Government of India had launched on 6th February, 2014 the Further Public Offering (FPO) of Engineers India Ltd. (EIL) for divestment of the 10% GOI equity holding in the Company with a price band of Rs. 145-150 per share of face value of Rs. 5/- with a discount of Rs. 6/- to the retail investors. Out of the 33693660 shares (3.36 Cr. shares) which were offered, bids were received for 95367000 shares (9.53Cr. shares) and thus the Issue was oversubscribed 2.83 times. In the Investor category-wise bids – the Qualified Institutional Buyers (QIBs) portion was subscribed 3.93 times and the retail individual investors 2.5 times. The further QIB demand break up at the top end of band i.e. Rs. 150/- is Foreign Institutional Investors (FIIs) 19%, Domestic Financial Institutions 74% and the Mutual Funds 7%. With the Issue price being fixed at Rs. 150 per share, the Government would receive Rs. 497.3 Crore approximately towards disinvestment proceeds. With this divestment, the GOI holding in EIL would come down to 70.4%.

The Book Running Lead Managers (BRLMs) to the Issue were ICICI Securities, IDFC Capital and Kotak Mahindra.

Divestment of government equity: FPO oversubscribed, issue priced at band top and government stake reduced. The Government divested a 10% equity stake in Engineers India Ltd through a Further Public Offering managed by appointed lead managers; the offer was oversubscribed, the issue price was fixed at the top of the price band, institutional demand composition at that price is reported, and the divestment reduced the government's holding while producing disinvestment proceeds based on the fixed price and offered shares.