Engineers India gains on strong QIB interest for FPO
Engineers India (EIL) has moved up 2% to Rs 327, after its follow-on public offer (FPO) got strong response from the qualified institutional buyers (QIBs).
The FPO of the company opened for subscription by investors yesterday - July 27, 2010. The QIB portion was almost fully subscribed on first day of the issue. Overall, the issue was subscribed by 0.51 times, according to information available on the NSE website.
The company has come out with FPO of 33.69 million equity shares of Rs 5 each for cash at a price band of Rs 270-290 through 100% book building process. The FPO closes for subscription on July 29 and for Non-Institutional Investors (NIIs) and retail investors on July 30.
The government currently holds 90.40% of the pre-offer paid-up capital of the company, and expects to mop-up Rs 977 crore from the 10% disinvestment.
The stock opened at Rs 322 and hit high of Rs 332 on the BSE. Around 110,000 shares have already changed hands on the counter.