NBCC (India) drops as government to dilute stake through OFS

NBCC (India) fell 1.5% to Rs 249.20 at 09:35 IST on BSE after the government proposed to sell up to 9 crore equity shares, or 15% equity in the company through an offer for sale.

The announcement was made after market hours yesterday, 19 October 2016.

Meanwhile, the S&P BSE Sensex was up 184.65 points or 0.66% at 28,169.02

On BSE, so far 51,000 shares were traded in the counter as against average daily volume of 1.56 lakh shares in the past one quarter. The stock hit a high of Rs 249.85 and a low of Rs 246.90 so far during the day. The stock had hit a record high of Rs 299.20 on 5 October 2016. The stock had hit a 52-week low of Rs 162 on 12 February 2016.

 

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

The government proposes to sell up to 9 crore equity shares, or 15% equity of NBCC (India) through an offer for sale (OFS) through a separate, designated window on the stock exchanges. The OFS opens today, 20 October 2016 for non-retail investors and tomorrow, 21 October 2016 for retail investors and non-retail investors who choose to carry forward their unallotted bids. The floor price for the OFS was set at Rs 246.50 per equity share, a discount of 2.57% to the stock's closing price of Rs 253 yesterday, 19 October 2016. Retail investors will be allocated offer shares at a discount of 5% to the issue price. As on 30 June 2016, the government held 90% stake in NBCC (India).

NBCC (India)'s consolidated net profit rose 16.4% to Rs 47.10 crore on 15.1% rise in net sales to Rs 1254.31 crore in Q1 June 2016 over Q1 June 2015.

NBCC (India) is a blue-chip Government of India (GoI) Navratna Enterprise under the Ministry of Urban Development, in construction sector.

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