NBCC shelves plans to raise Rs 1,000 crore via FPO

State-run NBCC has dropped plans to raise Rs 1,000 crore fresh capital through FPO route, saying it currently does not require funds for business expansion.
In May last year, the company's board had approved the follow on public offer (FPO) of 10 per cent of the post issue equity share capital for augmenting the company's resources to fund business development plans.
"The company has withdrawn the proposal to raise Rs 1,000 crore through FPO, because the company doesn't require money right now for its business operations," NBCC Chairman and Managing Director A K Mittal told reporters here.
The government, which currently holds 90 per cent stake in National Buildings Construction Corporation (NBCC), is looking to divest its stake.

In March this year, the board has approved splitting of company's equity share of face value of Rs 10 each into five shares of Rs 2 face value each with a view to making shares more affordable as well as increasing market liquidity.
The company has reported a 6 per cent increase in its consolidated net profit at Rs 141.48 crore and 40 per cent rise in income from operations to Rs 2,313.38 crore in the fourth quarter last fiscal.

For the entire 2015-16 financial year, NBCC's net profit increased to Rs 311.13 crore and income from operations rose to Rs 5,838.27 crore.

NBCC was listed on the bourses in 2012 when the government diluted 10 per cent stake to raise Rs 127 crore. The price band of the NBCC initial public offering had been fixed at Rs 90-106 per share.
NBCC, a Navratna enterprise is under the administrative control of Ministry of Urban Development, is present into three main segments -- Project Management Consultancy (PMC), Real Estate Development and EPC Contracting.