EIL follow on public offer opens on July 27
New Delhi: State run Engineer India follow on public offer through which the government is likely to mop up at least 
1,000 crore will open on July 27.
EIL's public offer of 33.69 million equity shares will open on July 27 and close on July 29 for qualified institutional buyers and on July 30 for the rest (retail and HNIs), official sources said.
Capital market regulator Securities and Exchange Board of India and Registrar of Companies (RoC) have given their nod for the public offering through which the government is offloading 10 percent of its stake, sources said.
The Government holds 90.4 per cent stake in EIL, which provides design and engineering services for petroleum, power and fertiliser companies.
At the current market price, the Government is expected to raise about 1,100 to 1,200 crore through the sale of ten percent stake in EIL. Post FPO, government holding in EIL will fall to 80.4 percent.
The government has appointed two more independent directors on board of consultancy firm Engineers India to pave way for the public offering.
Orders for appointment of KDP Nigam, professor of chemical engineering in IIT, Delhi and Adit Jain, chairman, IMA were issued on July 9, official sources said.
With these appointments, EIL board now has six independent directors to match the five functional and one government nominee director.
EIL now meets SEBI's listing norm of having equal number of functional and independent directors and has been cleared for sale of ten percent of government holding in the company through a follow on or further public offering (FPO).
Sources had earlier said that the FPO of 33.69 million equity shares of 5 each was likely in the last week of July.
Sources said EIL filed a Red Herring Prospectus for the FPO on July 9 after replying to market regulator Securities and Exchange Board of India's (SEBI) queries to the draft RHP (DRHP) it had filed last month.
Sources said 712,000 equity shares have been reserved for 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.
Half of the net offer of 32.98 million shares (after deducting employees quota) have been reserved for Qualified Institutional Buyers and retail investors would get up to 35 per cent of 11.54 million shares. The rest has been earmarked for non institutional buyers.
HSBC Holdings, ICICI Securities, SBI Capital Markets and IDFC Capital are book running lead managers for the FPO.
EIL had reported a 25.43 percent rise in consolidated net profit to 440.47 crore for the 2009-10 fiscal.
As a prelude to divestment, EIL paid a 1,000 percent ( 100 per share) special dividend totalling 561.65 crore. Of this, the government got 507.65 crore, in addition to a dividend tax of over 96 crore. EIL had a cash reserve of 1,320 crore as on March 31.
Source: PTI
1,000 crore will open on July 27.
EIL's public offer of 33.69 million equity shares will open on July 27 and close on July 29 for qualified institutional buyers and on July 30 for the rest (retail and HNIs), official sources said.
Capital market regulator Securities and Exchange Board of India and Registrar of Companies (RoC) have given their nod for the public offering through which the government is offloading 10 percent of its stake, sources said.
The Government holds 90.4 per cent stake in EIL, which provides design and engineering services for petroleum, power and fertiliser companies.
At the current market price, the Government is expected to raise about 1,100 to 1,200 crore through the sale of ten percent stake in EIL. Post FPO, government holding in EIL will fall to 80.4 percent.
The government has appointed two more independent directors on board of consultancy firm Engineers India to pave way for the public offering.
Orders for appointment of KDP Nigam, professor of chemical engineering in IIT, Delhi and Adit Jain, chairman, IMA were issued on July 9, official sources said.
With these appointments, EIL board now has six independent directors to match the five functional and one government nominee director.
EIL now meets SEBI's listing norm of having equal number of functional and independent directors and has been cleared for sale of ten percent of government holding in the company through a follow on or further public offering (FPO).
Sources had earlier said that the FPO of 33.69 million equity shares of 5 each was likely in the last week of July.
Sources said EIL filed a Red Herring Prospectus for the FPO on July 9 after replying to market regulator Securities and Exchange Board of India's (SEBI) queries to the draft RHP (DRHP) it had filed last month.
Sources said 712,000 equity shares have been reserved for 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.
Half of the net offer of 32.98 million shares (after deducting employees quota) have been reserved for Qualified Institutional Buyers and retail investors would get up to 35 per cent of 11.54 million shares. The rest has been earmarked for non institutional buyers.
HSBC Holdings, ICICI Securities, SBI Capital Markets and IDFC Capital are book running lead managers for the FPO.
EIL had reported a 25.43 percent rise in consolidated net profit to 440.47 crore for the 2009-10 fiscal.
As a prelude to divestment, EIL paid a 1,000 percent ( 100 per share) special dividend totalling 561.65 crore. Of this, the government got 507.65 crore, in addition to a dividend tax of over 96 crore. EIL had a cash reserve of 1,320 crore as on March 31.