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NBCC IPO to raise Rs 127 cr for govt

Press Trust of India/New Delhi 23 Mar 12 | 04:08 PM

State-owned National Buildings Construction Corporation (NBCC) today said its initial public offer (IPO) is expected to garner about Rs 127 crore.

"As part of divestment programme, the government will divest 10% stake through the offer for sale of 12 million equity shares of face value of 10 each," NBCC Chairman-cum-Managing Director Vishnu P Das told reporters here.

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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 today, the issue had attracted bids for 19.3% 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. floor price, price bandA discount of 5% 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.

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