The Sixth (6th) CPSE disinvestment of the Fiscal Year 2016-17 took place on 20th and 21st October, 2016 with the National Building Construction Corporation (NBCC) OFS getting oversubscribed 1.54 times in non-retail category and 1.50 times in retail category.

On offer was 15% paid-up equity capital of the company comprising 9,00,00,000 shares, each of FV of ₹ 2. Out of the shares on offer for sale, 20% were reserved for retail investors. The closing price on 19/10/2016 was ₹ 253.00 (BSE)/ ₹ 253.30 (NSE) and floor price was fixed at ₹ 246.50.

As per the new SEBI guidelines, only non-retail investors were allowed to place their bids on 20th October, 2016 (T Day) for non-retail portion, and retail investors were allowed to bid on 21st October, 2016 (T+1 day).

The retail investors bid today (T+1) for 20% of the portion reserved for them, i.e., 1,80,00,000 equity shares of the Company amounting to ₹ 443.70 crore at floor price. They had the option to place a price bid or opt for bidding at cut off price. The new arrangement provides retail investors the benefit of discovering the cut off price of T day and place their bids on T+1 day on a more informed basis than was the case earlier. As usual retail investors i.e. those investors who place bids for shares of total value of not more than ₹ 2.00 lakh, will in addition be entitled to a 5% discount. The discount to retail investors shall be applicable to bids received today (T+1).

With this disinvestment, the Government of India share in NBCC will come down to 75%.

At the end of the day with total subscription of ₹ 3098 crore against ₹ 2218 crore (at floor price), the NBCC OFS stood oversubscribed by 1.4 times.

The highlight of the issue has been the encouraging FII participation of ₹ 369.21 crore which works out to be 21% of the non-retail basket.

Retail reservation and cut-off price sequencing shaped the OFS sale, granting retail discount and separate T/T+1 bidding windows. Disinvestment proceeded by an Offer For Sale of fifteen percent of paid-up equity with twenty percent reserved for retail investors; non-retail bids were taken on T day to discover a cut-off price and retail bids on T+1 could use that cut-off or submit price bids, with retail bids below the small-investor threshold receiving a five percent discount; floor and reference market prices were published and the sale reduced the Government's shareholding to seventy-five percent.