The Engineers India’s follow-on public offer was fully subscribed on the second day of the issue. The Government’s 10 per cent share sale in EIL received bids for 3.97 crore shares as against 3.36 crore shares on offer.
Shares are being offered at a price band of ₹145-150 apiece and the issue would remain open till February 10. EIL is offering a discount of ₹6 a share to retail investors and employees. The Government plans to reserve 5 per cent of the offer for employees.
Most bids came in at the upper price band of ₹150. At this price, the Government will raise a little over ₹500 crore through the disinvestment.
On Friday, shares of EIL touched a high of ₹153.30 intra-day before closing at ₹151.35 on the BSE, up 1.61 per cent from its previous close.
The Government holds 80.4 per cent in the company. In 2010, it had divested 10 per cent of its stake in EIL through an FPO, at ₹290 a share.
This is the second disinvestment through the FPO route in the current fiscal. In December, the Government had sold 4 per cent of its stake in Power Grid Corporation, which fetched the exchequer over ₹1,600 crore.