State-run National Buildings Construction Corporation today said that it will dilute 10 per cent stake through an initial public offer, for which it has filed the Draft Red Herring Prospectus with SEBI.

“National Buildings Construction Corporation (NBCC) has filed a DRHP with SEBI on February 9, 2012 for an initial public offer,” NBCC said in a statement.

The company proposes to make a public offer of 1.2 crore equity shares of face value of Rs 10 each, it said but did not specify the total capital that the firm plans to raise through IPO.

“The offer comprises a net offer of 11,880,000 equity shares and includes a reservation of 1,20,000 equity shares for subscription by the eligible employees,” the company said.

NBCC said the proposed IPO would dilute the government’s stake by a total of 10 per cent, including the 0.1 per cent reservation for the employees.

“The equity shares offered through the offer are proposed to be listed on the National Stock Exchange and the BSE,” it added.

For the IPO transaction, NBCC has appointed IDBI Capital Market Services Ltd and Enam Securities Pvt Ltd as the book running lead managers.

NBCC is a public sector entity that is engaged in project management consultancy services for civil construction projects, infrastructure for power sector and real estate development.

Incorporated in 1960 as a wholly-owned government undertaking under the erstwhile Ministry of Works, Housing & Supply, the company currently functions under the Ministry of Urban Development.

Headquartered in the national capital, it has presence across 23 states and one Union Territory. NBCC has also undertaken projects overseas.

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