Published on Wednesday, January 27, 2016 by Dilip Davda
Government has informed exchanges for its plans to dilute 10% stake (33693660 equity shares of Rs. 5 each) of Engineers India Ltd (EIL). Dilution will take place by way of Offer for Sale (OFS) that is scheduled to open on 29.01.16 (Friday) and will be on from 9.15am to 15.30 pm on that day.
Seller promoter is The President of India acting through and representated by the Ministry of Petroleum and Natural Gas,Government of India. Selling brokers include SBICAP Securities Ltd, ICICI Securities Ltd, Edelweiss Securities Ltd and Deutsche Equities India Pvt Ltd. Allotment will be made on price priority basis. Reservation for retail investors is 20% of the issue size (i.e. 6738732 shares). Retail investors are eligible for 5% discount on the Cut-Off price. Pricing of the OFS will be announced by 28th January evening at 17.00 hrs post closure of the market. Minimum bid size will be 1 share and the maximum will be 33693660 shares.
Share closed at Rs. 205.40 on Wednesday 27.01.16 and based on it GoI is likely to mobilize around Rs. 688 crore.
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
