NBCC IPO to open for subscription on March 22 (Moneycontrol)

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

State-run construction company National Buildings Construction Corporation (NBCC) is set to open its initial public offer of 1.2 crore equity shares for subscription on Thursday, March 22, 2012, by diluting 10% stake. The issue is a part of divestment programme of Rs 40,000 crore prepared by government for FY12.

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. Retail investors and employees will get shares at a 5% discount to final price of the issue.

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. The issue will close on March 27.

This would be the last issue under divestment programme of FY12. The government could not able to achieve this target of Rs 40,000 crore in this financial year as well. It managed to raise more than Rs 14,000 crore so far through ONGC and Power Finance Corporation.

Even the auction issue of ONGC had just sailed through; in fact the issue was bailed out by LIC by subscribing for 40 crore equity shares as against issue size of 42.77 crore equity shares. The government raised more than Rs 12,700 crore through auction.

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.