Engineers India Offer Seeks to Raise $204 Million; Shares Fall in Mumbai
India will seek to raise as much as 9.6 billion rupees ($204 million) from a sale of shares in Engineers India Ltd. as part of a record sell-off of state assets.
The government will offer the shares starting tomorrow for 270 rupees to 290 rupees apiece, with a 5 percent discount for employees and retail buyers, according to an advertisement in the Financial Express newspaper today. ICICI Securities Ltd., HSBC Securities & Capital Markets (India) Pvt., IDFC Capital Ltd. and SBI Capital Markets Ltd. are managing the sale.
India aims to tap investors’ appetite for the South Asian nation’s equities after companies there raised more than 654 billion rupees from shares sales this year, according to data compiled by Bloomberg, putting the market on course to exceed 2008’s record 782 billion rupees. The government plans to raise 400 billion rupees from share sales in the year ending March 31.
Shares of state-owned Engineers India fell 9.6 percent to 305.85 rupees as of 9:09 a.m. local time in Mumbai trading today. That curbs the stock’s gains this year to 18 percent, surpassing the 3.8 percent advance in the benchmark Sensitive Index.
India plans to sell about 33.7 million shares, or a 10 percent stake in the New Delhi-based company, in an offering that ends July 30, according to the advertisement. The firm provides design, engineering and construction services mainly to oil, gas and petrochemicals companies.