State-run National Buildings Construction Corporation (NBCC) on Wednesday said it will come out with an initial public offer to offload 10 per cent equity next month.
The company will make a public offer of around 1.2 crore equity shares of face value of Rs 10 each, which the industry sources say, could fetch Rs 140 crore.
“NBCC will launch its IPO in the second half of March 2012 as the market has started looking up now,” said Mr Ajay K Garg, Director Finance, NBCC.
The price band of the issue will be decided after the first week of March, the official said, adding that of the 10 per cent equity sale, 0.1 per cent will be reserved for the employees.
The firm has already filed the Draft Red Herring Prospectus with Sebi on February 9 for a net offer of 1,18,80,000 equity shares, which includes a reservation of 1,20,000 equity shares for subscription by the eligible employees.
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 that constitutes 90 per cent of its business, and also has interests in the power sector as well as real estate.
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.