NBCC extends fall after OFS begins

The stock dipped 4% to Rs 241 on intra-day trade, extending its Thursday's 1% fall on BSE.

NBCC has dipped 4% to Rs 241 on intra-day trade, extending its Thursday’s 1% fall on BSE, after the government stake sale in the construction company started yesterday.  The stock has fallen below its floor price of Rs 246.50 set via offer for sale (OFS) route.

The government held 90% in the company as of September 30 and is expected to raise about Rs 2,200 crore from the stake sale.

The 90-million share OFS received more than 110 million bids till Thursday, data provided by stock exchanges showed. LINK

Around 20%, or 18 million shares in the OFS are reserved for retail (small) investors, which will be auctioned on Friday. In case the retail portion remains undersubscribed, the shares will be allotted to other categories of investors. Retail investors are being offered an additional discount of 5%.

At 10:34 am, the stock was down 2.8% at Rs 244 on BSE, against 0.44% decline in S&P BSE Sensex. A combined 1.72 million shares changed hands on the counter on BSE and NSE so far.