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NBCC IPO to fetch Rs 250 crore
By siliconindia
|
Wednesday, 08 June 2011, 17:41 IST
New Delhi: The government proposes to raise about 
250 crore from the Initial Public Offer ( IPO) of the construction firm NBCC, for which it will appoint two merchant bankers by June end. At present, government owns 100 percent in the National Building Construction Corporation (NBCC) and has floated request for proposal inviting bids from investment bankers.
The disinvestment of NBCC has already got in-principle approval and the finance ministry, in consultation with Urban Development Ministry, is currently in the process of preparing a Cabinet note for seeking final approval, sources in the finance ministry said.
NBCC is into various fields like water and environment management, earthquake resistant building technology & retrofitting, disaster management, project management & consultancy, infrastructure projects, institutional, housing and industrial projects, real estate works, power projects, RCC Chimneys & Cooling towers, bridges, airports, railway projects including underground & elevated metro-tracks and Stations, post completion maintenance works, transmission lines, marine structures, border fencing jobs, PMGSY works, JNNURM Projects.
To maintain its competitive edge in the market, NBCC is always obsessed to make value addition to its areas of operation. The government plans to disinvest 10 percent of its stake in the company.
"We are expecting to mop up somewhere between 200-250 crore. The merchant bankers would put in their bids by 10 June and from there we would finalize two managers for the NBCC issue," they added.
NBCC is likely to be the third PSU to hit the market in the current fiscal as part of the government's disinvestment plan through which it expects to raise 40,000 crore. The company posted a turnover of Rs 2982 crore as on March 31, 2010 ranking itself as the number one PSU construction company of the country.
Presently, face value of shares of NBCC is 1,000 a piece. In order to make the shares more affordable to the investors, before the proposed disinvestment the Ministry of Urban Development and the Company would split the shares of face value of 1,000 each into shares of face value of 10 each, sources said.
The company has initiated action in respect of splitting of shares and the process is likely to be completed by the end of June 2011, sources added.
250 crore from the Initial Public Offer ( IPO) of the construction firm NBCC, for which it will appoint two merchant bankers by June end. At present, government owns 100 percent in the National Building Construction Corporation (NBCC) and has floated request for proposal inviting bids from investment bankers.
The disinvestment of NBCC has already got in-principle approval and the finance ministry, in consultation with Urban Development Ministry, is currently in the process of preparing a Cabinet note for seeking final approval, sources in the finance ministry said.
NBCC is into various fields like water and environment management, earthquake resistant building technology & retrofitting, disaster management, project management & consultancy, infrastructure projects, institutional, housing and industrial projects, real estate works, power projects, RCC Chimneys & Cooling towers, bridges, airports, railway projects including underground & elevated metro-tracks and Stations, post completion maintenance works, transmission lines, marine structures, border fencing jobs, PMGSY works, JNNURM Projects.
To maintain its competitive edge in the market, NBCC is always obsessed to make value addition to its areas of operation. The government plans to disinvest 10 percent of its stake in the company.
"We are expecting to mop up somewhere between 200-250 crore. The merchant bankers would put in their bids by 10 June and from there we would finalize two managers for the NBCC issue," they added.
NBCC is likely to be the third PSU to hit the market in the current fiscal as part of the government's disinvestment plan through which it expects to raise 40,000 crore. The company posted a turnover of Rs 2982 crore as on March 31, 2010 ranking itself as the number one PSU construction company of the country.
Presently, face value of shares of NBCC is 1,000 a piece. In order to make the shares more affordable to the investors, before the proposed disinvestment the Ministry of Urban Development and the Company would split the shares of face value of 1,000 each into shares of face value of 10 each, sources said.
The company has initiated action in respect of splitting of shares and the process is likely to be completed by the end of June 2011, sources added.
