2016 Disinvestment - Engineers India issue subscribed 2.54 times Friday January 29,2016

The NDA Government’s divestment of 10 % of its stake in Engineers India Ltd (EIL)sailed through on Friday January 29,2016, with the issue being subscribed 2.54 times. 

The NDA Government put over 3.36 crore shares on the block, selling them at a floor price of Rs. 189. 

This would net the exchequer a minimum of Rs. 637 crore, more if the final cut-off price is higher. 

The portion reserved for retail investors (67,38,732 shares) was subscribed 3.91 times, with the highest number of bids made at the floor price. (Retail investors are eligible for a five per cent discount on the final cut-off price of the issue.) 

Non-retail investors subscribed 2.19 times to the over 2.69 crore shares allotted to them, with bids being spread out in the Rs. 189-Rs 190 range. 

After the stake sale, the Government will still hold a little over 59 % in EIL

Note

EIL will be the fifth disinvestment this financial year, after Rural Electrification Corporation, Power Finance Corp, Dredging Corporation of India and Indian Oil Corporation, intended to bridge the fiscal deficit.
However, the disinvestment programme (including EIL) at just over Rs. 13,200 crore is still far short of the Rs. 41,000-crore Union Budget targe