Engineers India Sets FPO Issue Price At Rs 290 Per Share

Engineers India has set the issue price for the follow-on-public offer (FPO) at Rs 290 a share i.e. upper end of the price band of Rs 270-290.The issue was subscribed 2.35 times by retail participants and 5.85 by high net worth individuals. On whole the issue was subscribed 13.36 times according. The issue received bids for 450193120 shares against the 33693660 shares on offer.

In relation to the Offer, the Empowered Group of Ministers (‘EGoM’) in its meeting held on August 02, 2010, has decided the offer price for the issue at Rs 290. The EGoM has also decided to offer a discount of 5% to the Offer Price to Employees and Retail Investors.

Engineers India had came up with a follow-on public offering (FPO) of 33,693,660 shares to raise about Rs 1,000 crore. The equity shares of Rs 5 each were offered in a price band of Rs 270-290 per equity share. The offer comprised of 712,000 equity shares for the company employees who would be entitled to the discount that retail investors will get in the offer that is being done through book building route.

The offer closed for subscription on July 29 for QIBs and on July 30, for the retail and HNI category. ICICI Securities, HSBC Securities, IDFC Capital and SBI Capital were the lead managers of the issue.

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