The Offer for Sale (OFS) of Engineers India Limited (EIL) which hit the markets on January 29, 2016 met with enthusiastic response from all sections of investors with the issue getting oversubscribed by an impressive 2.54 times. The Government of India offered 3.36 crore shares to public through the OFS, thereby disinvesting 10% of its equity in the CPSE. The floor price was fixed at Rs.189 per share of face value Rs 5/-.
The EIL OFS received overwhelming response from retail investors which is borne out from the fact that the OFS registered participation of 3.9 times from this category of investors. Adding to the lustre of the OFS was the encouraging participation of High net worth individuals who also lapped up the offer. The OFS also witnessed healthy participation of FIIs, banks, mutual funds and insurance companies.
The investor enthusiasm for the OFS is borne out by the fact that the indicative price for the offer was Rs.190.63 which is above the floor price.
The resounding success of the EIL OFS is a testimony to the Company’s leadership position in the oil & gas sector as well as successful diversification initiatives into new areas like smart cities, L&G terminals, waste water management and fertilizers. The success of the offer raises the hopes for a revitalised disinvestment programme in the remaining period of the current fiscal. – See more at: http://www.engineersindia.com/eil-ofs-gets-re/nd-330#sthash.YwxwunBQ.dpuf
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