NBCC IPO subscribed nearly 5 times on last day rush

A flood of bids from institutional and retail investors on the last day today saw the National Buildings Construction Corporation's (NBCC) initial share sale offer getting subscribed by 4.82 times.

The IPO, which opened on March 22, garnered total demand for over 57.8 million shares, worth over Rs 612 crore, against 12 million equities on offer, according to the data available on the stock exchanges till 1800 hrs.

The category reserved for retail investors was subscribed 3.1 times, while the portion meant for qualified institutional buyers (QIB) was subscribed 7.07 times. HNI portion attracted bids 1.7 times the shares on offer.

The issue was subscribed 58.30% till yesterday.

The price band of the IPO has been fixed at Rs 90-106 per share. At the lower end, the government would raise about Rs 108 crore while at the upper band about Rs 127 crore would be garnered.

NBCC under the administrative control of Ministry of Urban Development provides project management consultancy services for construction projects, civil infrastructure for power sector and real estate development.

NBCC is the government's third and last disinvestment candidate in the current fiscal, after Follow-on Public Offer of Power Finance Corp (PFC) in May 2011 and sale of shares through a one-day auction of ONGC earlier this month.

The government has raised a total of Rs 13,894 crore from PFC's FPO and ONGC share sale.