The two-day offer for sale of shares of NBCC concluded on Friday, and the government looked set to raise about R2,200 crore from sale of its 15% stake in the company after retail investors bid for 2.69 crore shares, against 1.2 crore reserved for them.
The 9 crore share sale offer received a combined bid of more than 13.77 crore shares from institutional and retail investors. On Thursday, institutional investors had bid for 1.54 times or 11.08 crore shares, against 7.2 crore shares on offer.
With the stake sale in NBCC, the government’s holding will come down from 90% to 75%. The government had set a
base price of R246.5 per share for the offer.Retail investors defined as individual investors who place bids for sales of the total value of not more than R2 lakh in aggregate were allotted shares at a discount of 5% to
the cut-off price.
NBCC reported a net profit of R309 crore on the back of R5,827-crore revenue in FY16. Net profits of the debt-free company grew at a compounded annual growth rate of 17% in the last five years.
The company received orders worth R17,516.53 crore in FY16, taking its total order book to R29,782.80 at the end of the previous financial year.In the secondary market, the stock of NBCC slipped near 4% to Rs 241.30.
The government has sold a 7% stake in Hindustan Copper to raise R402 crore and an 11.36% in NHPC to mop up R2,767 crore so far in the current financial year. The government had set a divestment target of R56,500 crore for FY17 in the Budget.