Taking a step forward in its disinvestment plans for the fiscal, the Government will soon appoint legal counsels to help mop up Rs 250 crore from stake sale in its wholly-owned unit NBCC.

The initial public offer (IPO) for 10 per cent Government stake in National Buildings Construction Corporation (NBCC), a unit under the Ministry of Urban Development, is likely to hit the market in October, said sources.

“We have initiated the process for disinvestment. In some time the draft IPO prospectus will be finalised. NBCC IPO most likely would hit the market in October,’’ the sources added.

Enam Securities and IDBI Capital have already been appointed as merchant bankers to manage the sale programme.

Through the IPO, the company is likely to float about 90 lakh shares having a face value of Rs 10 each.

The Finance Ministry, in consultation with the Urban Development Ministry, is preparing a Cabinet note seeking approval for the share sale, an official said.

The Government has already raised over Rs 1,100 crore by selling its five per cent equity in Power Finance Corporation (PFC) which was the first follow-on public offer of a PSU in the current fiscal.

Besides, the Cabinet has cleared the disinvestment proposals of SAIL, ONGC and HCL.

The Government aims to generate Rs 95,000 crore between 2011-12 and 2013-14 from selling its equities in state-run enterprises. The Centre aims to earn Rs 40,000 crore from disinvestment this fiscal.

This is despite the Government not being able to meet its target of Rs 40,000 crore last fiscal when the total disinvestment proceeds stood at Rs 22,762.96 crore.

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