Urban Development Minister Kamal Nath said the government has fixed the price band at Rs 90-106 a share for the initial public offer (IPO) of National Buildings Construction Corporation (NBCC).
Government hopes to raise Rs 120 crore via offer of 1.2 crore equity shares, by diluting 10% stake. Retail investors and employees will get shares at a 5% discount to final price of the issue.
State-run construction company's issue will open for subscription during March 22 and March 27, Kamal Nath says. He said equity shares offerd via IPO would be listing in the next month (April).
This would be the last issue by government, which is a part of divestment programme of Rs 40,000 crore, for FY12. The government has raised more than Rs 14,000 crore so far via stake dilution in two public issues - Power Finance Corporation and ONGC. This time also the government failed to achieve its target. Now, it has reduced its target to Rs 30,000 crore for FY13 and Rs 25,000 crore for FY14.
The company is engaged in the business of project management consultancy services for civil construction projects; civil infrastructure for power sector; and real estate development.
It is an offer for sale by the government, which comprises a net offer to the public of 1.188 crore shares and a reservation of 1.2 lakh equity shares for subscription by eligible employees.
Bids can be made for a minimum of 60 equity shares and in multiples of 60 equity shares thereafter. Retail investors can bid for minimum of 2220 equity shares at lower end of price band and 1860 shares at higher end.
Credit Analysis & Research Limited assigned a grade 4/5 to the IPO, indicating above average fundamentals.
Equity shares issued through this issue are proposed to be listed on the BSE and National Stock Exchange.
IDBI Capital Market Services Limited and Enam Securities Private Limited are the book running lead managers to the issue.
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