The union cabinet today approved a proposal to divest 10 per cent of the paid-up equity capital of National Buildings Construction Corporation Ltd (NBCC) through an initial public offer in the domestic market.
The Government of India holds 100 per cent equity stake in the company. The IPO will lead to NBCC getting listed on the stock exchange.
A portion of the shares to be offered for sale through IPO will be reserved for employees of the company, an official release said today.
The cabinet also approved a 5 per cent price discount to employees investors in the company's IPO under the employees reservation quota as also to retail investors in a bid to widen participation in the IPO issue.
As of today, NBCC has a paid-up equity capital of Rs90 crore (90 million shares of face Value of Rs10 each). The paid-up capital and the number of shares may increase in the event of the company issuing bonus shares.
National Buildings Construction Corporation Ltd, a central public sector enterprise, is engaged in construction, engineering and project management consultancy services.