Tender Offer | ₹586.90 Crores | Listed at BSE, NSE | Fri, Jan 22, 2021 - Fri, Feb 5, 2021
Engineers India Ltd. Buyback is a tender offer for the repurchase of up to 6.99 crore equity shares at a buyback price of ₹84 per share with a face value of ₹5 per share, aggregating to ₹586.90 crores.
The record date for determining eligible shareholders is Jan 1, 2021. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Jan 22, 2021 and closes on Feb 5, 2021, with the last date for receipt of tender forms being Feb 8, 2021.
The finalisation of buyback acceptance is expected on Feb 12, 2021, followed by settlement of bids on Feb 15, 2021.
IDBI Capital Markets Services Ltd. is the Manager to the Buyback and Alankit Assignments Ltd. is the Registrar and IDBI Capital Markets & Securities Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the Engineers India Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Fri, Jan 22, 2021
Offer Closing Date
Fri, Feb 5, 2021
Buyback Price
₹84 per share
Record Date
January 1, 2021
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 119 Equity Shares out of every 828 fully paid-up Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 80 Equity Shares out of every 753 fully paid-up Equity Shares held on the Record Date. |
| Particulars | For the year/period ended (Rs. in Crores) | ||
|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Revenue | 3,461.09 | 2,669.42 | 1,967.05 |
| Profit After Tax | 430.24 | 370.07 | 377.87 |
| Net Worth | 2,345.46 | 2,275.85 | 2,267.87 |
Incorporated in 1965, Engineers India Limited (EIL) is a Government of India undertaking. EIL is a Navratna Company. A Navratna Company is a public sector undertaking that gives a company greater financial and operational autonomy to compete in their drive to become a global giant in the global market.
EIL is a Total Solutions engineering consultancy company providing design, engineering, procurement, construction (EPC), and integrated project management services, principally focused on the oil and gas, petrochemicals, fertilizer, and LNG industry segments in India and internationally. The other business operations of the organization include non-ferrous mining and metallurgy, wastewater, and infrastructure. EIL is also a primary provider of engineering consultancy services for the GoI's energy security initiative under its Integrated Energy Policy for strategic crude storages.
EIL is a technology-driven company that believes investing in technology is imperative for maintaining its leadership position. EIL's technological excellence is driven by 2409 engineers & professionals in a competent employee base of 2806 employees as of March 31, 2020. With over 55+ years of experience, EIL has an impressive record of executing over 5000 assignments consisting of 400 major projects valued at over US$200 Billion.
EIL has its corporate office in New Delhi and head office in Gurugram with a branch office in Mumbai and three regional engineering offices in Kolkata, Chennai & Vadodara. The company also a global presence with its overseas offices in Abu Dhabi, London, Milan, and Shanghai.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Nov-2020 | 74.95 | 63.90 | 69.75 |
| Oct-2020 | 69.00 | 60.50 | 64.30 |
| Sep-2020 | 72.25 | 63.45 | 66.25 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Nov-2020 | 74.95 | 63.80 | 69.76 |
| Oct-2020 | 69.00 | 60.40 | 64.29 |
| Sep-2020 | 72.30 | 63.50 | 66.21 |
The Buyback offered is undertaken by the Company:
i) To return surplus cash to its members.
ii) To help improve return on equity and thus increase shareholder's value.
iii) To optimize the capital structure.
Engineers India Ltd.
Engineers India House,
Bhikaji Cama Place,
New Delhi - 110066
New Delhi, New Delhi, 110066
Lead Manager(s)
Registered Broker
The Engineers India Buyback opens on January 22, 2021, and closes on February 5, 2021.
The Engineers India Buyback last day to buy is not available as of now.
The Engineers India Buyback is a Tender Offer.
Engineers India Buyback Schedule
| Buyback Opening Date | January 22, 2021 |
| Buyback Closing Date | February 5, 2021 |
| Last Date for receipt of Tender Forms | February 8, 2021 |
| Finalisation of Buyback Acceptance | February 12, 2021 |
| Last Date for settlment of bids | February 15, 2021 |
| Last Date for Extinguishment of Shares | February 22, 2021 |
The Engineers India Buyback is being offered at Rs ₹84 per share.
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 119 Equity Shares out of every 828 fully paid-up Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 80 Equity Shares out of every 753 fully paid-up Equity Shares held on the Record Date. |
The issue size of Engineers India Buyback is 6,98,69,047 equity shares at ₹84 per share aggregating up to ₹586.90 Crores.
The Buyback offered is undertaken by the Company:
i) To return surplus cash to its members.
ii) To help improve return on equity and thus increase shareholder's value.
iii) To optimize the capital structure.
All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.
The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.
The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.
The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.
The Engineers India Buyback offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.
