Public sector engineering consultancy company Engineers India Ltd. (EIL) has opened its follow on public offer (FPO) for subscription. The issue, for which the government had announced a price band of Rs. 270-290 on Monday, will remain opened to July 30.

The state-run unit is one of the premier companies in the country which provide knowledge and know how about design, engineering, procurement, construction and integrated project management services. The company is mainly focused on principally focused on the oil and gas and petrochemicals sectors.

The FPO is also part of the government's disinvestment plans. Under the issue government is planning to offload 10 per cent of its stake in the company and mop up Rs. 950 crore in the process. Post issue government's stake in EIL will come down to 80.40 per cent.

While retail investors are offered a discount of five per cent, to be decided through book building process, the price band of Rs. 270-290, as fixed by the government, already seems to be at a huge discount. On Monday shares of EIL dropped over six per cent to close at Rs. 316.75, which is still higher than the expected issue price of the stock.