Disinvestment in NBCC approved -Governance Now

Disinvestment in NBCC approved

It is estimated to generate nearly Rs 1,706 crore

GN Bureau | July 15, 2016

#NBCC #disinvestment #ministry of urban development

The cabinet committee on economic affairs (CCEA) has approved the disinvestment of 15 percent paid-up equity of National Buildings Construction Corporation Limited (NBCC). The government at present has 90 percent shareholding in the company. The disinvestment is estimated to generate nearly Rs 1,706 crore to the government.

The CCEA has also decided to allot additional shares to the eligible and willing employees at a discount of 5 per cent to the issue price of the OFS.

The government holds 90 percent of the equity, which is 540 million shares. The balance 10 percent of the equity is held by the public.

The NBCC IPO (initial public offering) was launched in March 2012, when the government divested 10 percent paid-up equity capital of NBCC and got the company listed on the stock exchanges. It had earned Rs 124.97 crore as proceeds towards the share sale.

In the current fiscal, the government aims to collect Rs 56,500 crore through disinvestments in PSUs. This is 18.7 percent lower than Rs 69,500 crore, which it had targeted in the last budget. Of the total budgeted proceeds.

Rs 36,000 crore is estimated to come from minority stake sale in PSUs and the remaining Rs 20,500 crore is estimated to come from strategic sales.

NBCC is under the administrative control of the ministry of urban development. It operates in the field of construction, engineering and project management consultancy services.

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