Cabinet approves divestment of 15% NBCC stake
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the disinvestment of 15 per cent paid up equity of National Buildings Construction Corporation Limited (NBCC) out of Government of India’s 90 per cent shareholding.
It would result in estimated receipts of Rs1,706 crore approximately to the government. However, the actual realization amount will depend upon the market conditions and the investor interest prevailing at the time of actual disinvestment.
The disinvestment would further broad-base NBCC’s shareholding and enhance the disinvestment receipts for making them available to the government for utilization as per disinvestment policy. In order to inculcate a sense of belongingness amongst the employees of NBCC, it has also been decided to allot additional shares to the eligible and willing employees at a discount of 5 per cent to the issue/discovered (lowest cut off) price of the OFS.
NBCC was incorporated on 5th November, 1960 as a wholly owned Government of India enterprise under the administrative control of the Ministry of Urban Development with the objective of becoming a leading company in the field of construction, engineering and project management consultancy services.
The NBCC IPO (Initial Public Offer) was launched in March, 2012, when the Government of India divested 10 per cent paid up equity capital of NBCC out of its 100 per cent shareholding and got the company listed on the stock exchanges. The Government realised Rs124.97 crore as proceeds towards the share sale.
