Engineers India Buyback opens for subscription on 22 January 2021. the company aims for an issue size of ₹586.90 Crores through this buyback.
Engineers India Limited
incorporated in 1965, Engineers India Limited (EIL) is a Government of India undertaking. EIL is a Navratna Company. A Navratna Company is a public sector undertaking that gives a company greater financial and operational autonomy to compete in their drive to become a global giant in the global market.
EIL is a Total Solutions engineering consultancy company providing design, engineering, procurement, construction (EPC), and integrated project management services, principally focused on the oil and gas, petrochemicals, fertilizer, and LNG industry segments in India and internationally. The other business operations of the organization include non-ferrous mining and metallurgy, wastewater, and infrastructure. EIL is also a primary provider of engineering consultancy services for the GoI’s energy security initiative under its Integrated Energy Policy for strategic crude storages.
EIL is a technology-driven company that believes investing in technology is imperative for maintaining its leadership position. EIL’s technological excellence is driven by 2409 engineers & professionals in a competent employee base of 2806 employees as of March 31, 2020. With over 55+ years of experience, EIL has an impressive record of executing over 5000 assignments consisting of 400 major projects valued at over US$200 Billion. EIL has its corporate office in New Delhi and head office in Gurugram with a branch office in Mumbai and three regional engineering offices in Kolkata, Chennai & Vadodara. The company also a global presence with its overseas offices in Abu Dhabi, London, Milan, and Shanghai.
Objectives of the Issue
- To help improve return on equity and thus increase shareholder’s value.
- For optimizing the capital structure.
- To return surplus cash to its members.
Engineers India Buyback Issue Timetable
| Offer Opens On | Jan 22, 2021 |
| Offer Closes On | Feb 5, 2021 |
| Record Date | Jan 1, 2021 |
| Last Date for receipt of Tender Forms | Feb 8, 2021 |
| Finalization of Buyback Acceptance | Feb 12, 2021 |
| Last Date for settlement of bids | Feb 15, 2021 |
| Last Date for Extinguishment of Shares | Feb 22, 2021 |
Engineers India Buyback Detail
| Security Name | Engineers India Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 6.99 Crores |
| Issue Size (Amount) | ₹586.90 Crores |
| Buyback Price | ₹84 per share |
| Face Value | ₹5 per share |
| Listing At | BSE, NSE |
Buyback Ratio
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 119 Equity Shares out of every 828 fully paid-up Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 80 Equity Shares out of every 753 fully paid-up Equity Shares held on the Record Date. |
Company Financials
| Particulars | For the year/period ended (Rs. in Crores) | ||
|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Revenue | 3,461.09 | 2,669.42 | 1,967.05 |
| Profit After Tax | 430.24 | 370.07 | 377.87 |
| Net Worth | 2,345.46 | 2,275.85 | 2,267.87 |
Stock Market Data (for preceding 3 months)
BSE
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Nov-2020 | 74.95 | 63.9 | 69.75 |
| Oct-2020 | 69 | 60.5 | 64.3 |
| Sep-2020 | 72.25 | 63.45 | 66.25 |
NSE
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Month | High Price | Low Price | Average Price |
| Nov-2020 | 74.95 | 63.8 | 69.76 |
| Oct-2020 | 69 | 60.4 | 64.29 |
| Sep-2020 | 72.3 | 63.5 | 66.21 |
Engineers India Buyback Registrar
Alankit Assignments Ltd
Alankit House 2E/21,
Jhandewalan Extension,
New Delhi – 110055
Phone: (011) 4254 1234
Email: eilbuyback@alankit.com
Website: https://www.alankit.com/
Company Contact Information
Engineers India Limited
Engineers India House,
Bhikaji Cama Place,
New Delhi – 110066
Phone: 011-26762121
Email: company.secretary@eil.co.in
Website: https://engineersindia.com/
Final Thoughts
A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors. subscribing for a buyback issue is purely a personal choice. make a detailed study before you make a decision on buyback issue subscription.
Happy Investing