NBCC issue price fixed at Rs106 per share; to fetch government Rs125 crore
28 Mar 2012
The government today fixed the issue price for shares of National Buildings Construction Corporation's (NBCC) public offer at Rs106 per share to raise about Rs125 crore.
The shares of NBCC would be listed on the Bombay Stock Exchange and National Stock Exchange on 12 April.
The sale of 10 per cent equity capital of National Buildings Construction Corporation Ltd (NBCC) received overall subscription of 4.93 times the issue size with 96.13 per cent or 4.74 times of the subscription received at the upper end of the price band of Rs106 per equity share.
The issue was open for subscription from 22 March 2012 to 27 March 2012 for all categories of investors with the price band of Rs90 to Rs106, with 5 per cent discount on issue price to retail investors and eligible employees under the employees reservation quota as approved by EGoM in its meeting held on 19 March 2012.
The response of the retail investors has been 3.39 times. The empowered group of ministers (EGoM) headed by finance minister Pranab Mukherjee today decided the Issue price as Rs106 per equity share.
The EGoM also decided to give discount of 5 per cent to the retail investors and the employees. The receipts from the IPO will be Rs125 crore approximately (net of retail and employees discount).
The Cabinet Committee on Economic Affairs (CCEA) had fixed a price band of Rs99 to Rs106 for sale of a 10 per cent equity capital in NBCC.
The CCEA at its meeting on 11 August 2011, had approved the offer for sale of 10 per cent paid-up stake in NBCC, totaling 12 million equity shares out of GoI's shareholding, as per SEBI regulations. Out of this 1,20,000 shares were reserved for employees of the company.
