New Delhi : The government’s 10% share sale in Engineers India through a follow-on public offer was fully subscribed on the second day, set to fetch the exchequer about Rs 500 crore. Bids were received for over 3.97 crore shares, or 1.18 times the 3.36 crore shares on offer, as of 1700 hrs today. The portion reserved for qualified institutional investors was oversubscribed 2.6 times.

The shares are being offered at a price band of Rs 145-150 apiece and the issue closes on Monday. The government holds 80.4 per cent in the ‘miniratna’ public sector undertaking and had divested a 10 per cent stake in the company in 2010.
This is the second divestment through a follow-on offer in the current financial year after Power Grid.
The government has raised about Rs 3,000 crore against its disinvestment target of Rs 40,000 crore.

Free Press Journal