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NBCC IPO opens today-news22032012


The Initial Public Offer of state- run National Buildings Construction Corporation ( NBCC) today hit the capital market, with investors bidding for about 1% of shares under offer by early afternoon.

NBCC is the government's third disinvestment candidate in the current fiscal, after Follow-on Public Offer of Power Finance Corp ( PFC) in May 2011 and sale of shares through a one-day auction of ONGC earlier this month.

The government is looking to raise an estimated Rs120 crore through NBCC IPO, while it has raised a total of Rs13,894 crore from PFC's FPO and ONGC share sale.

The NBCC IPO, which opened this morning and would close on March 27, attracted bids for about 116,000 shares, creating demand worth over Rs1 crore, by 1315 hours.

The response was muted to NBCC offer during the initial hours, when compared to shares being sold in private sector entity Godrej Properties today through an Institutional Placement Programme ( IPP).

A total of 12 million shares have been proposed to be sold in the NBCC IPO, for which the price-band has been prescribed at Rs90-106 per share.

NBCC provides project management consultancy services for construction projects, civil infrastructure for power sector and real estate development.
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