NBCC share sale: 8 merchant bankers vie to manage the show

Eight merchant bankers will make presentation before the officials of the department of investment and public asset management on Tuesday

As many as eight merchant bankers, including Citibank and Nomura, are vying to manage the sale of 15 per cent government stake in NBCC, which could fetch about Rs 2,100 crore to the exchequer.

The eight merchant bankers, which include the State Bank of India Capital Markets, Axis Bank and Edelweiss, will make presentation before the officials of the department of investment and public asset management on Tuesday.

Others in the fray include ICICI Bank, IDBI Bank and Kotak Mahindra Bank.

The government will appoint up to three merchant bankers for the share issue, which could fetch about Rs 2,100 crore to the exchequer at the current market price.

Last month the Cabinet had cleared 15 per cent stake sale of NBCC through an offer for sale (OFS).

The government is also considering allotting shares to eligible NBCC employees at a discount of 5 per cent to the issue price up to a maximum of 0.75 per cent of the OFS size. The employees will be eligible to apply for shares up to Rs 2 lakh.

Shares of NBCC closed at Rs 239.65, down 0.37 per cent on BSE on Friday. At the current market price, sale of 15 per cent stake could fetch around Rs 2,100 crore to the exchequer.

Government currently holds 90 per cent stake in NBCC.

NBCC, a central public sector enterprise under the Ministry of Urban Development, is engaged in construction, engineering and project management consultancy services.