NBCC IPO To Hit Market’s On 22nd March 2012

As part of a last minute plan to fill up its coffers, the government has decided to go ahead with the launch of the initial public offer (IPO) of National Building Construction Corporation (NBCC) on 22nd March 2012, just shy of the fiscal year ending date for 2011-12. The offer through which the govt. plans to offload 10 per cent of its stake would close on 27th March 2012.

The total offer comprises of 1.2 crore equity shares, of which 120,000 equity shares would be kept aside for the employees and the remaining 1.18 crore shares would be kept for retail and institutional investors on a proportionate basis, as prescribed in the Draft Red Hearing Prospectus (DRHP). Retail Investors would get an additional 5 per cent discount on the final issue price.

Investors must note that after the recently concluded ONGC auction, this current NBCC offer will be the last issue under the govt.’s total disinvestment outlay of Rs 40000 that it had laid out for FY12.

As a reminder, the company is engaged in the business of project management consultancy services for civil construction projects; civil infrastructure for power sector; and real estate development. To read further on the company and understand its business we suggest you to read our previous article (Title: - NBCC to launch IPO in this fiscal dated 29th Feb 2012).

NOTE:-

This article is not a recommendation to subscribe to the IPO offer. We shall provide updates in this regard when we interact with the management and analyse the offer further.