The Offer for Sale (OFS) of Engineers India Limited (EIL) which hit the markets on January 29 met with enthusiastic response from all sections of investors with the issue getting oversubscribed by an impressive 2.54 times. The government offered 3.36 crore shares to public through the OFS, thereby disinvesting 10% of its equity in the CPSE. The floor price was fixed at Rs 189 per share of face value Rs 5.
The EIL OFS received overwhelming response from retail investors which is borne out from the fact that the OFS registered participation of 3.9 times. Adding to the lustre of the OFS was the encouraging participation of high net worth individuals who also lapped up the offer. The OFS also witnessed healthy participation of FIIs, banks, mutual funds and
insurance companies. The investor enthusiasm for the OFS is borne out by the fact that the indicative price for the offer was Rs 190.63 which is above the floor price. The resounding success of the EIL OFS is a testimony to the company’s leadership position in the oil and gas sector as well as successful diversification initiatives into new areas like smart cities, L&G terminals, waste water management and fertilisers.