State-owned National Buildings Construction Corporation (NBCC) plans to come out with an initial public offer (IPO) by March-end this year, Chairman and Managing Director Vishnu P Das said on Wednesday.
This will follow five per cent stake sale of ONGC through an auction, which is slated to open tomorrow. The government is planning to offload 10 per cent of its stake through the issue.
NBCC is planning to raise around Rs 200 to Rs 250 crore through the share sale, according to reports. The company has filed a draft red herring prospectus (DRHP) on February 9 but is yet to get the approval from markets regulator Securities and Exchange Board of India (Sebi).
The issue will give a discount of five per cent for retail investors .
“We are planning to come out with the IPO in the current financial year,” said Das. When asked about the timing of the issue, he said: “Book running lead managers and government have decided that we come out with the offer now.”
The company which is into project management consultancy for government’s construction projects and real estate projects has a order book of Rs 10,622 crore.
“We have delivered profits constanly for four to five years, our networth has improved over the years and we have delivered projects within schedule,” Das said about the company’s track record.
The company which has land parcels in Patna, Kochi and Gurgaon among others plans to launch the projects for sale in the coming months.
IDBI Capital Markets and Enam Securities are the bankers to the issue.