Millennium Post

Centre begins process of throwing away 10% EIL

The Department of Disinvestment (DoD) will soon appoint merchant bankers to manage the 10 per cent stake sale in Engineers India Ltd (EIL) which may fetch Rs 520 crore to the exchequer.

The Department of Disinvestment has invited expression of interest from merchant bankers, or singly or as a consortium, with experience in public offerings/OFS to act as book running lead managers and to assist and advise government in the process.

The government plans to disinvest 10 per cent stake, or 3.36 crore shares of Engineers India Ltd  through a further public offering (FPO) in the domestic market. At the current market price of Rs 156 apiece, the 10 per cent stake sale could fetch over Rs 520 crore to the exchequer. Up to 5 per cent of the public offering will be reserved for the employees of the company.

The government currently holds 80.40 per cent in Engineers India Ltd, a Miniratna PSU In 2010, it had divested 10 per cent stake through an FPO in Engineers India Ltd.

In January, the government had decided to offload its 10 stake in consultancy major Engineers India Ltd through public offer. The paid-up equity capital of the company, as on March 31, 2012 was Rs 168.47 crore.

Engineers India Ltd is the leading provider of design, engineering and project management and consultancy services firm for the hydrocarbon sector.
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