NBCC to launch Rs 9-cr IPO in October
National Building Construction Corporation Ltd (NBCC) - the first government construction company to be disinvested - is all set to launch its Rs 9-crore public issue in October this year. The government plans to divest 10% of its stake in NBCC. Constructing numbersbusiness Updated: Jul 05, 2011 22:33 IST
National Building Construction Corporation Ltd (NBCC) - the first government construction company to be disinvested - is all set to launch its Rs 9-crore public issue in October this year. The government plans to divest 10% of its stake in NBCC.
"We plan to raise Rs 150 crore to Rs 200 crore from the initial public offering (IPO) of NBCC," said a senior urban development (UD) ministry official on the condition of anonymity.While it was earlier decided that the face value of the shares would be Rs 1,000, the UD ministry now plans to issue shares of a face value of Rs 10 each to make it more affordable for investors.
"The NBCC board has already approved the proposal. It has also got the green signal from the UD and finance ministries," said a senior ministry official.
The government has appointed IDBI Capital and Enam Securities as the two lead managers for managing the issue.
Incorporated in 1960, NBCC is a 100% government-owned company under the administrative control of the UD ministry.
NBCC's disinvestment is part of the Centre's ambitious plan to mop up Rs 40,000 crore by selling stakes in state-owned firms.
NBCC till date has a paid-up capital of Rs 90 crore.
"We are in the process of finalising the modalities. If everything goes as per plan we will be issuing the shares sometime before Diwali," said a official.
NBCC will be organising road show across the country and abroad before the launch of the IPO.
"We are planning to do road shows in Ahmedabad, Mumbai and Delhi where we will give presentation on NBCC," the official said.