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Govt selects 3 investment bankers to manage 10% stake sale of Engineers India

23 May 2013 Evaluate

The government has selected three investment bankers for managing 10% stake sale of Engineers India (EIL). The Inter-Ministerial Group (IMG) has selected ICICI Securities, IDFC and Kotak Mahindra Capital, for managing the issue and the road shows will start next month. The DoD would be conducting road shows in Hong Kong, US and UK beginning June for EIL stake sale. Earlier this week five bankers -- ICICI Securities, IDFC, Kotak Mahindra Capital, Edelweiss Financial Services and IDBI Capital -- had made presentations before the IMG. 

The government holds 80.40% in the company and in 2010 it had divested 10% of its stake in EIL through an Further Public Offering (FPO). The government in month of January had decided to go for further disinvestment of 10% stake, or 3.36 crore shares in EIL through FPO in the domestic market. Up to 5% of the public offering will be reserved for the employees of the company.  At the current market price, the stake sale could fetch around Rs 600 crore to the exchequer.

Engineers India is a leading provider of design, engineering and project management and consultancy services firm for the hydrocarbon sector.

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