Government invites merchant bankers to manage NBCC share sale

NEW DELHI: Government has kick started the process to sell 15 per cent stake in NBCC and has invited merchant bankers to manage the share sale.

The government will appoint up to three merchant bankers for the share issue, which could fetch about Rs 2,200 crore to the exchequer at the current market price.

Earlier this month the Cabinet had cleared 15 per cent stake sale of NBCC through an offer for sale ( OFS).

The government is also considering allotting shares to eligible NBCC employees at a discount of 5 per cent to the issue price up to a maximum of 0.75 per cent of the OFS size. The employees will be eligible to apply for shares up to Rs 2 lakh.

The merchant bankers will have to put in their bids with the Department Investment and Public Asset Management ( DIPAM) by August 16.

Shares of NBCC were quoting at Rs 249.45, down 0.62 per cent on the BSE. At the current market price, sale of 15 per cent stake could fetch around Rs 2,200 crore to the exchequer.

Government currently holds 90 per cent stake in NBCC.

NBCC, a CPSE under the Ministry of Urban Development, is engaged in fields of construction, engineering and project management consultancy services.