NBCC stake sale at a floor price of Rs 246.50 begins; govt to raise Rs 2,200 cr

Zee Media Bureau

New Delhi: The government's 15 percent stake sale in state-owned construction company NBCC at a floor price of Rs 246.50 begun early Thursday.

The stake sale is expected to fetch around Rs 2,200 crore to the exchequer.

As per PTI report,  over 50 percent of the shares reserved for institutional investors getting subscribed in the first hour of trade. As much as 9 crore shares will be sold over two days, with institutional investors getting to bid on the first day and retail ones getting a chance tomorrow.

The Centre had earlier in July cleared a proposal to sell its stake NBCC India with an aim to meet the ambitious Rs 56,500-crore PSU disinvestment target in 2016-17.

At present, the government holds 90 percent in the company.

The share sale will help the company meet SEBI's listing requirement of having a minimum public holding of 25 percent.

NBCC was listed on the bourses in 2012 when the government diluted 10 percent stake to raise Rs 127 crore. The price band of the NBCC IPO was fixed at Rs 90-106 per share.

Earlier, in May this year, shareholders had approved stock split to facilitate the FPO under the governments disinvestment programme. The company has split its share of Rs 10 each into five with a face value of Rs 2 each.

With PTI Inputs