NBCC IPO to raise about Rs 127 cr for government
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NBCC IPO to raise about Rs 127 cr for government

Last Updated: Friday, March 23, 2012, 16:14
 
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NBCC IPO to raise about Rs 127 cr for government
New Delhi: State-owned National Buildings Construction Corporation (NBCC), on Friday said its initial public offer (IPO) is expected to garner about Rs 127 crore.

"As part of divestment programme, the government will divest 10 percent stake through the offer for sale of 1,20,00,000 equity shares of face value of 10 each," NBCC Chairman-cum-Managing Director Vishnu P Das told reporters here.

The price band of the IPO, that closes on March 27, has been fixed at Rs 90-106 per share. At the lower end, the government would raise about Rs 108 crore and at the upper band about Rs 127 crore.

Till 1500 hrs Friday, the issue had attracted bids for 19.3 percent of shares on offer, according to the BSE data.

"The issue is rightly priced and we are very confident that it will go through," Das said.

A discount of 5 percent to the offer price will be given to retail investors and eligible employees, he said.

NBCC is the government's third and last disinvestment candidate in the current fiscal, after Follow-on Public Offer of Power Finance Corp (PFC) in May 2011 and sale of shares through a one-day auction of ONGC earlier this month.

The government has raised a total of Rs 13,894 crore from PFC's FPO and ONGC share sale.

The floor price is nine times the face value and the cap price is 10.6 times of the face value, Das said.

NBCC under the administrative control of Ministry of Urban Development provides project management consultancy services for construction projects, civil infrastructure for power sector and real estate development.

PTI



First Published: Friday, March 23, 2012, 16:14


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