National Buildings Construction Corporation (NBCC) will most likely tap the capital market with an initial public offering in the second fortnight of March, its Chairman-cum-Managing Director, Mr Vishnu P. Das, has said.
The Centre plans to divest 10 per cent stake in NBCC through an offer for sale route in the proposed IPO. No funds will accrue to the company from the IPO as the company does not intend to issue any fresh shares.
book-building route
The price band and the actual timing of the issue will be decided by an empowered group of Ministers, which may meet in the second week of March. About 1.2 crore shares of Rs 10 each will be on offer through the book-building route.
State-owned NBCC is engaged in the business of project management consultancy services for civil construction projects (PMC), civil infrastructure for power sector and real estate development.
Nearly 90 per cent of its revenues come from the PMC, according to Mr Ajay Garg, Director Finance, NBCC. Mr Garg said that listing of NBCC shares would improve visibility for the public sector company.
The company has appointed IDBI Capital Market Services Ltd and Enam Securities Pvt Ltd as the Book Running Lead Managers.