Engineers India open to pick up stakes in infra projects

Chennai, July 26 (IANS) Engineers India is interested in taking small stakes in companies promoting infrastructure projects to diversify its sectoral portfolio, a company official said Monday.

‘We are interested in taking small stakes in projects like city gas distribution, solar, nuclear power, water management and others. Apart from the investment returns we will be able to provide our services to such companies,’ R.K.Grover, director (projects) told reporters here.

The Rs.2,196-crore revenue company majorly focused on the entire chain of hydrocarbon sector is now training its eyes on power (solar and nuclear), water management, gas based fertiliser, city gas distribution and coal to liquid projects.

According to Grover, the company is putting up a small solar power project in Rajasthan.

The company’s current order book position stands at Rs.6,236 crore to be executed over next two and half years, said A.K. Batra, general manager (marketing).

Fifty three percent of the order book consists of lumpsum turnkey projects and the balance comprise of consultancy and engineering projects.

Grover said 98 percent of the company’s turnkey projects are under open book estimate contracts as against fixed price contracts since the former would protect it from upward fluctuations in input costs.

‘Similarly in the case of downward trend in material costs, the project owner would benefit,’ he said.

Engineers India will hit the market with a follow on public offer of around 3.3 crore equity shares of Rs.5 each at a price band of Rs.270 to Rs.290 Tuesday.

The offer marks disinvestment of 10 percent by the Indian government and the issue will close on July 30.

With this issue the Indian government is hoping to mop up anything between Rs.900 crore to Rs.977 crore.

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