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NBCC IPO Gets Muted Response On Day 1

The initial public offer or IPO of state-run National Buildings Construction Corporation Ltd., or NBCC, received mute response and got subscribed by 0.19 times on the first day of the issue.

The company has received total bids for 2.26 lakh equity shares, compared to the issue size of 120 lakh equity shares of Rs.10 each at 17.00 hrs. IST Thursday, as per National Stock Exchange website.

The price band has been fixed between Rs.90 and Rs.106 apiece and the issue closes on June 27.

NBCC is the government's third disinvestment 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 planning to raise Rs.120 crore through NBCC IPO, while it has raised a total of Rs.13,894 crore from PFC's FPO and ONGC share sale

NBCC is primarily involved in project management consultancy services for civil construction projects (PMC), civil infrastructure for power sector and real estate development

Credit rating agency CARE has assigned 'IPO Grade 4' to the proposed NBCC IPO, indicating above average fundamentals.

IDBI Capital Market Services and Enam Securities are book running lead managers to the NBCC IPO.

by RTTNews Staff Writer

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