Government to sell 15% in NBCC, raise ₹1,706 crore

NEW DELHI: The Cabinet on Wednesday approved 15% stake sale in state-owned construction firm NBCC, looking to garner ₹1,706 crore.

Published on: Jul 14, 2016, 06:09:10 IST

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NEW DELHI: The Cabinet on Wednesday approved 15% stake sale in state-owned construction firm NBCC, looking to garner ₹1,706 crore.

The government holds 90% stake in National Buildings Construction Corporation Ltd (NBCC), which has a market capitalisation of ₹14,274 crore.

“The government hopes an estimated receipt of ₹1,706 crore from this (disinvestment). But it is just estimation,” law and IT minister Ravi Shankar Prasad said after the meeting of the Cabinet Committee on Economic Affairs (CCEA).

The government has also decided to allot additional shares to eligible and willing employees at a discount of 5% to the Issue/ discovered (lowest cut off) price of the offer for sale (OFS), the company said in a statement.

NBCC was listed on the bourses in 2012 when the government diluted 10% stake to raise ₹124.97 crore.

The company’s stock closed down 10.7% at ₹229.80 on the BSE on Wednesday.

The government is looking to raise ₹56,500 crore through stake sales in public sector units in 2016-17.

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