Press Information Bureau

Government of India

Ministry of Finance

11-August-2011 19:47 IST

Disinvestment of 10% paid up equity of National Buildings Construction Corporation Limited

The Union Cabinet today gave its approval for divestment of 10% of total paid up equity of National Buildings Construction Corporation Ltd. (NBCC) out of its holding through Initial Public Offering (IPO) in the domestic market. The Government of India holds 100% of the equity in the Company. This will lead to NBCC listing its shares in the Stock Exchanges. A portion of the shares to be offered for sale through IPO shall be reserved for the employees of the Company. The Cabinet also approved allowing 5% price discount to the employees of the Company under employees reservation quota to encourage their becoming stakeholders in the Company. Government has further decided to allow this 5% price discount to retail investors as well to encourage the development of people-ownership. The disinvestment process will be as per the Disinvestment Policy approved by the Government of India on 5th November, 2009.

The paid up equity capital of the Company is Rs. 90 crore (9 crore shares of Face Value of Rs. 10 each). The paid up capital and the number of shares may increase in the event of Company issuing bonus shares. National Buildings Construction Corporation Ltd., a Central Public Sector Enterprise, is a leading company in the field of construction, engineering and project management consultancy services.

Equity divestment: approval for public offering with employee reservations and price discount extended to retail investors. Approval was granted for the divestment of ten percent of paid-up equity of National Buildings Construction Corporation Limited by Initial Public Offering, with a portion of shares reserved for employees and a five percent price discount authorised for employees and extended to retail investors; the disinvestment will proceed in accordance with the Disinvestment Policy of 5 November 2009, and the company's paid-up capital and share count may change in the event of bonus issues.