In another move that will raise funds for the government through divestment, state-run Engineers’ India Ltd has filed the draft prospectus for its follow-on public offer with the market regulator, Securities and Exchange Board of India (SEBI).
The issue that is expected to hit the market in July, will raise close to Rs 1,100 crore at the current market price through the 10 per cent divestment of its holding in the company.
Engineers India has a market capitalisation of Rs 10,857 as on Thursday and a profit of Rs 445 crore in the financial year 2009-10. It will put around 3.36 crore shares on offer for sale, which will bring down the
government’s holding in the
company from 90.4 per cent to 80.4 per cent.
“The offer would constitute a divestment of 10 per cent by the promoter (government) and all the proceeds shall go to the promoter,” the company said.
ICICI Securities, HSBC Securities, IDFC Capital and SBI Capital Markets are to be the book running lead managers.
EIL is an engineering consultancy company providing design, engineering, procurement, construction and integrated project management services, principally on the oil and gas and petrochemicals industries in India and abroad.