EIL falls 13% after govt fixes FPO band
Shares of state-run Engineers India plummeted by nearly 13%, a day after the government set the price band of the company’s follow-on public offer at `270-290, which is at a discount from the current market price.
By PTI |
MUMBAI: Shares of state-run Engineers India plummeted by nearly 13% on the Bombay Stock Exchange ( BSE), a day after the government set the price band of the company’s follow-on public offer at `270-290, which is at a discount from the current market price.
Shares of Engineers India fell 12.80% to touch an intra-day low of `294.40 on BSE on Monday. The price band fixed by the government is at a discount of 14% from EIL’s closing price of `337.65 on the BSE on Friday. “The government’s disinvestment process has so far failed to favour the market. Though the company has a fantastic order book, it will tend to trade low as the price band fixed is at a discount from the company’s current market price,” BNP Paribas Financial Services Assistant Vice-President Gaurang Shah said.
On Sunday, a Group of Ministers headed by finance minister Pranab Mukherjee had set the price band for the sale of the government’s 10% shareholding in the engineering consultancy firm at a discount from the closing price of `337.65 on Friday.
On the National Stock Exchange, the stock was trading at `309.10, down 8.64%. On the volume front, a total of over six lakh shares of the firm changed hands on the bourses.
Shares of Engineers India fell 12.80% to touch an intra-day low of `294.40 on BSE on Monday. The price band fixed by the government is at a discount of 14% from EIL’s closing price of `337.65 on the BSE on Friday. “The government’s disinvestment process has so far failed to favour the market. Though the company has a fantastic order book, it will tend to trade low as the price band fixed is at a discount from the company’s current market price,” BNP Paribas Financial Services Assistant Vice-President Gaurang Shah said.
On Sunday, a Group of Ministers headed by finance minister Pranab Mukherjee had set the price band for the sale of the government’s 10% shareholding in the engineering consultancy firm at a discount from the closing price of `337.65 on Friday.
On the National Stock Exchange, the stock was trading at `309.10, down 8.64%. On the volume front, a total of over six lakh shares of the firm changed hands on the bourses.
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