NBCC hires IDBI Caps, Enam for IPO

Written by Himani Kaushik | New Delhi | Updated: Jun 30 2011, 09:00am hrs
IDBI Capital and Enam Securities have been appointed as merchant bankers to manage the initial public offer of National Buildings Construction Corp.

According to official sources, IDBI and Enam securities quoted the lowest fee of around R2 crore, including the expenses and therefore topped the financial bids. Last week, 10 domestic banks applied for the mandate, of which eight qualified in the technical round. The bidders included Kotak Mahindra Capital, Intensive Fiscal, YES Bank, Avendus, Edelweiss capital as well as ICICI Securities.

Last month, the department of disinvestment had called for bids to appoint two merchant bankers for the issue.

The government selects bankers through a two stage-process of technical and financial bids. According to the rules, other bidders have to match the fee quoted by the lowest bidder (L1). Foreign banks have stayed away from the issue as the issue size is small, owing to its size, said sources. NBCC is a wholly owned government enterprise under the ministry of urban development.