NBCC tumbles on buzz cabinet approves stake sale

NBCC (India) fell 7.63% to Rs 237.70 at 14:44 IST on BSE on reports the Union Cabinet has approved stake sale in the company.

Meanwhile, the BSE Sensex was down 5.50 points, or 0.02%, to 27,802.64.

On BSE, so far 17.20 lakh shares were traded in the counter, compared with an average volume of 1.18 lakh shares in the past one quarter. The stock hit a high of Rs 267 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 231.10 so far during the day. The stock hit a 52-week low of Rs 162 on 25 August 2015. The stock had outperformed the market over the past one month till 12 July 2016, rising 36.91% compared with 4.40% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 30.79% as against Sensex's 10.59% rise.

The large-cap company has an equity capital of Rs 120 crore. Face value per share is Rs 2.

Details regarding the quantum of the stake sale is expected to be announced at a briefing later in the day, media reports suggested.

Shares of NBCC (India) also witnessed profit booking after rising 34.98% in the preceding seven trading sessions to end at Rs 257.40 yesterday, 12 July 2016, from its recent closing high of Rs 190.70 on 30 June 2016.

NBCC (India) announced after market hours on Tuesday, 5 July 2016, that it secured a total business of about Rs 587.47 crore in June 2016. India's stock market was shut on Wednesday, 6 July 2016, on account of Id-Ul-Fitr (Ramzan Id). The stock surged 10.47% to Rs 215.30 on Thursday, 7 July 2016.

On a consolidated basis, net profit of NBCC (India) rose 5.87% to Rs 141.48 crore on 38.80% rise in net sales to Rs 2251.14 crore in Q4 March 2016 over Q4 March 2015.

NBCC (India), formerly known as National Buildings Construction Corporation, is a blue-chip Government of India (GoI) Navratna Enterprise under the Ministry of Urban Development, in construction sector. The GoI held 90% stake in the firm (as per shareholding pattern as on 31 March 2016).

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