estate development. Vishnu P Das, chairman-cum-managing director talks to Moushumi Das Gupta on NBCC's future plans:
NBCC launched its first initial public offering (IPO) in March this year. What has the response been like? Do they have plans to launch follow-on public offer (FPO)?
Consequent upon the decision taken by the government to disinvest 10% of its equity, NBCC launched its initial public offering (IPO) in the month of March, 2012.
Bid opened for public on March 22, 2012 and closed on March 27, 2012. The price band decided was Rs.90.00 to Rs.106. Offer price fixed was Rs.106 per equity share.
The issue was over-subscribed by 4.93 times.
Regarding the launch of follow-on public offer (FPOs, the decision is to be taken by the government since it involves further disinvestment of its equity in the company.
NBCC is slowly but steadily increasing its presence in the real estate sector. Is it part of a conscious policy shift?
NBCC's business model includes Project Management Consultancy, competitive participation in infrastructure works and real estate. Project Management Consultancy constitutes 90% of our business turnover. Thus, it is important that NBCC continues to strengthen its presence in the PMC sector.
However, NBCC has exposure in real estate sector as well. And, we continue to work in this particular segment. There is no shift in policy as such that NBCC shall become a major player in real estate.
Can you elaborate on some of the recent as well as upcoming real estate projects that NBCC has undertaken/plans to undertake?
We have a residential project going on in Gurgaon Sectors 89 and 37-D; here the construction is in progress and sale has already been launched.
We have also put our commercial projects at Okhla and Kolkata's Hemanta Basu Sarani area, for sale.
The other upcoming projects of NBCC are in Alwar (Rajasthan), Lucknow (UP) and Patna (Bihar). Besides, NBCC continues to participate in auctions undertaken by the Government.
In fact, recently, we have procured 3 acres land in Meerut (UP) and 4 acres in Ghaziabad (UP).
As on date, what is NBCC's total land bank?
We have a total land bank of around 130 acres and at least more than 50% of land is in developing stage.
NBCC has undertaken over a dozen infrastructure projects in the overseas market. Are some new overseas projects on the anvil?
NBCC has earlier completed its overseas projects in countries like Iraq, Libya, Nepal, Yemen, Maldives, Mauritius, Turkey and Botswana.
At present, we are working for the Maldivian government where we are constructing a hotel and a police academy.
What is the status of the redevelopment project of government houses in Delhi undertaken by NBCC?
We are strongly following up the projects of Kidwai Nagar (East) which accommodates a total number of 4700 dwelling units.
The project is at approval stage with various statutory authorities.
Also, there are various re-development projects which are at the "consideration stage" by the government and the same is being followed up from our end as well.