The first CPSE disinvestment of the last quarter of the fiscal year 2015-16 got off to a thumping start today with the Engineers India Limited (EIL) OFS getting oversubscribed 2.54 times.

On offer was 10% paid up capital of the company comprising 33, 69, 36,600 shares, each of Fv of ₹ 5. Out of the shares offered for sale, 20% were reserved for retail investors i.e. those investors who placed bids for shares of total value of not more than ₹ 2.00 lakh.  In addition a 5% discount was also offered to retail investors on price bid.

With this disinvestment, the GOI share in EIL will come down to 59.37%.

At the end of the day with total subscription of ₹ 1641.52 crores the issue stood oversubscribed by 2.54 times.

The investor enthusiasm for the issue is borne out by the fact that the indicative price for was ₹ 190.63 which is above the floor price. The previous day (28/01/2016) closing price was ₹ 194.05 (BSE)/ ₹ 193.65 (NSE) and floor price was fixed at ₹ 189.

The highlight of the issue has been the overwhelming retail investor participation of 3.92 times amounting to ₹ 513.08 crores. The non retail participation was an impressive 2.20 times amounting to ₹ 1128 crores.

The issue was marked by robust all round participation from different categories:

S.No	Category	Value (Rs crore)
1	Retail	513.08(31%)
2	Mutual Funds	243.32(15%)
3	Banks (public & private)	130.28(8.0%)
4	Insurance Companies (public & private)	583.23 (36%)
5	FII	86.75(5.0%)
6	Others (proprietary, HNI ETC)	84.86(5%)
	Total	1641.52 (100%)

Offer for Sale oversubscription: EIL OFS saw strong retail reservation and institutional demand, reducing government shareholding. An Offer for Sale (OFS) of ten percent of paid-up capital included a twenty percent retail reservation with a retail discount and a floor price; indicative bidding exceeded the floor, the OFS closed significantly oversubscribed with strong retail and institutional participation, and the Government's shareholding in the company was reduced to the stated post-offer level.