Govt to raise Rs2,200 cr from NBCC share sale; floor fixed at Rs246.50
20 October 2016
Government expects to raise around Rs2,200 crore through sale of a 15-per cent equity in state-owned National Buildings Construction Company (NBCC) at a floor price of Rs246.50 per share.
The government had, in July, cleared a proposal to sell stake in NBCC India as part of its efforts to meet the ambitious Rs56,500-crore PSU disinvestment target in 2016-17.
The government holds a 90-per cent stake in the company and this would stand reduced to 75 per cent post divestment.
The share sale will also help the company meet SEBI's listing requirement of having a minimum public holding of 25 per cent.
NBCC was listed on the bourses in 2012, ahead of the Sebi revising listing norms, when the government diluted 10 per cent stake to raise Rs127 crore. The price band of the NBCC IPO was fixed at Rs90-106 per share at that time.
Shareholders of NBCC had, in May this year, approved a stock split - from Rs10 shares to Rs2 shares - to facilitate the FPO under the governments disinvestment programme.
NBCC undertakes project management consultancy, which is its core area of focus in implementation of projects with quality, speed, economy and safety, incorporating maximum green features and ensuring sustainability.
It also undertakes engineering procurement and construction contracts, which encompass detailed design engineering; procurement and expeditious execution of projects with proper construction management, quality assurance and training.
Besides, NBCC is also active in the real estate segment since 1988 executing real estate projects - both commercial and residential. The company, of late, has ventured into re-development of properties for the government.