stake sale in NBCC

Govt seeks to raise $254 mn via stake sale in NBCC

By PTI
13 July, 2016

The Centre on Wednesday approved 15 per cent disinvestment in state-owned construction firm NBCC, hoping to garner Rs 1,706 crore from the stake sale.

The decision to divest 15 per cent of government’s stake in the NBCC was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

Government holds 90 per cent stake in the company, which has a market capitalisation of Rs 14,274 crore.

“The government hopes an estimated receipt of Rs 1,706 crore from this (disinvestment). But it is just estimation,” Law and IT Minister Ravi Shankar Prasad told reporters after the CCEA meeting.

The actual realisation amount will depend on market conditions and investor interest at the time of disinvestment.

An official statement said that in order to inculcate a sense of belongingness amongst the employees of NBCC, it has also been decided to allot additional shares to the eligible and willing employees at a discount of 5 per cent to the Issue/discovered (lowest cut off) price of the Offer For Sale (OFS).

As per market regulator SEBI’s guidelines, the minimum public holding in a listed company has to be maintained at 25 per cent.

National Buildings Construction Corporation Limited (NBCC) was listed on the bourses in 2012 when the government diluted 10 per cent stake to raise Rs Rs 124.97 crore.

The company has split its share of Rs 10 each into five with a face value of Rs 2 each.

The NBCC stock closed at Rs 229.80 a piece on BSE, down Rs 27.60 or 10.72 per cent over Tuesday.

The disinvestment of NBCC, the release said, would further broadbase NBCC’s shareholding and enhance the disinvestment receipts for making them available to the Government for utilization as per Disinvestment Policy.

Government has pegged disinvestment target at Rs 56,500 crore for 2015-16. Of this, Rs 36,000 crore is to come from minority stake sale in PSU and Rs 20,500 crore from strategic sale.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
India govt set to raise $330 mn from NBCC stake sale

India govt set to raise $330 mn from NBCC stake sale

PTI 10 months ago
Government today looked set to raise about Rs 2,200 crore from sale of its 15 per cent stake in NBCC after retail investors grabbed 82...
Govt clears stake sale in Coal India, ONGC, NHPC; may garner over $7.2B

Govt clears stake sale in Coal India, ONGC, NHPC; may garner over $7.2B

PTI 3 years ago
Government today cleared 5 per cent disinvestment in oil major ONGC, which may fetch the exchequer about Rs 18,000 crore. According to sources, the Cabinet...
Cabinet approves stake sale in IOC, NTPC

Cabinet approves stake sale in IOC, NTPC

PTI 2 years ago
The government will sell its 10 per cent stake in blue-chip Indian Oil Corporation (IOC) and 5 per cent in power producer to mop up...
No Comments

Govt seeks to raise $254 mn via stake sale in NBCC

Powered by WordPress.com VIP