NBCC stake sale: Institutions put in bids worth Rs 2,700 crore

New Delhi: State-owned NBCC's share sale Thursday garnered 1.54 times subscription from institutional buyers, who put in bids totalling more than Rs 2,700 crore.

The two-day share sale, wherein the government is offloading 15 percent of its equity, attracted bids for over 11.08 crore shares as against 7.20 crore offered to institutional investors on the first day, according to the stock exchange data.

Most of the bids came at Rs 246.73 per share, slightly higher than the floor or minimum bid price of Rs 246.50. At this price, subscription of over 11.08 crore shares totalled over Rs 2,700 crore.

The offer for sale (OFS) will open tomorrow for retail subscribers.

Shares of NBCC closed at Rs 251.15, down 0.73 percent over previous close on BSE.

NBCC is the third disinvestment through OFS route by the government in the current fiscal. Government is targeting Rs 56,500 crore through selling shares and privatisation of public sector undertakings (PSUs).

It has so far raised Rs 6,414 crore through OFS and buyback of equity.

The government is selling a total of nine crore equity shares or 15 percent stake at a floor price of Rs 246.50 a share.

The remaining 1.80 crore shares reserved for retail investors, who would also be given a 5 percent discount to the share allotment price, will go up for subscription tomorrow.

Any unsubscribed portion of the retail category after allotment will be allocated to the un-allotted bids of institutional buyers who have chosen to carry forward their bids to Friday.

The government holds 90 percent in the company, which has a market capitalisation of Rs 15,180 crore.

The share sale will help the company meet Sebi norms that mandated PSUs to have a minimum public holding of 25 percent.

The Cabinet had in July this year cleared disinvestment in the project management consultancy and real estate development company.

NBCC was listed on the bourses in 2012 when government diluted 10 percent stake to raise Rs 127 crore. The price band of the NBCC IPO was then fixed at Rs 90-106 per share.

In May this year, shareholders had approved stock split to facilitate the FPO under the government's disinvestment programme. The company has split its share of Rs 10 each into five with a face value of Rs 2 each.