EIL dips 13% on below-par FPO pricing | business | Hindustan Times
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EIL dips 13% on below-par FPO pricing

business Updated: Jul 26, 2010 23:26 IST
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Shares in Engineers India Ltd fell 13 percent on Monday, after the price band for a follow-on public offering (FPO) of shares in the state-run firm to raise up to $211 million (Rs 987 crore) was set at a steep discount.

The price band for the share sale in Engineers India, which provides engineering and technical services for industrial projects, has been fixed at Rs 270-290 per share, the company said on Monday. This represents a discount of 20 per cent at the lower end of the price band to Friday’s closing price of Rs 337.7.

“The stock price will likely converge towards the FPO (follow-on public offering) price band in the next couple of days,” said an analyst with a domestic brokerage firm.