Engineers India (EIL), the country’s largest government-run engineering and consultant in the hydrocarbon sector

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plans to double its overseas business during the next two years as global markets are recovering from economic meltdown.

In addition, the company will come up with its follow-on public offer (FPO) in the second quarter of the next financial year after the government’s decision to divest 10 per cent of its stake in the company. At present, international portfolio contributes 10 per cent to the turnover from consultancy business segment. Cashing-in on opportunities provided by economic revival in US and Europe, EIL plans to double its overseas business as early as possible, AK Purwaha, chairman and managing director of EIL said.

The government-run enterprise that has set up a new office in China last month has been affected by the economic meltdown as several overseas consultancy projects came to a standstill. But the firm is aggressively looking at renewing old contracts as well as negotiating new projects, the chairman said. The firm now has about 100 employees overseas in nations such as Algeria and UAE. EIL is looking to expand into Kenya, Ghana, Nigeria and Brazil. The company, which provides high-end knowledge based consultancy in the hydrocarbon sector, has a sound order book position of Rs 7,500 crore. EIL registered revenue of Rs 135,346.19 lakh during the first nine months of the ongoing financial year, which includes Rs 74,519.75 lakh from consultancy and engineering projects and another Rs 60,826.44 lakh from lump sum turnkey projects.

The government, which owns 90.4 per cent in the firm, decided to divest 10 per cent of its stake. “Our annual financial result will be ready by May-June. So the FPO is likely to be out by early second quarter of the next financial year,” said the chairman. Other stakeholders of EIL include retail investors holding 2.68 per cent, financial institutions with 3.60 per cent, while banks and other mutual fund companies account for 1.62 per cent stake.

Purwaha feels that the public issue will help his company for an image makeover and will get market driven prices. “It will give more opportunity for the retail investors. And it will reflect the company better in the market and will help retail investors getting market-driven prices,” he added.

Credit Analysis & Research (CARE ratings) has rated EIL with AAA. “The fundamentals of the company are strong. The public issue will give the opportunity for investors to get more access to the company,” said DR Dogra, chief executive officer and managing director of CARE ratings.