Wednesday, 13 July 2016

Cabinet approves 15% stake sale in NBCC-The Total Investment & Insurance Solutions

Contact Your Financial Adviser MONEY MAKING MC
13  July 2016 

The Cabinet here on Wednesday approved 15% divestment of the government's stake in National Buildings Construction Corporation Limited (NBCC) aiming to collect approximately Rs1,706 crore.

“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the disinvestment of 15% paid up equity of NBCC out of government’s 90% shareholding,” the Union Finance Ministry said in a statement. The Total Investment & Insurance Solutions


The balance 10% of the equity is held by the public. The Total Investment & Insurance Solutions

“It would result in estimated receipts of approximately Rs1,706 crore to the government. However, the actual realisation amount will depend upon the market conditions and the investor interest prevailing at the time of actual disinvestment,” the statement said.

The government aims to generate Rs56,500 crore through disinvestment in PSEs this financial year. The Total Investment & Insurance Solutions


During 2015-16, the government could manage to meet less than half the budget estimates at Rs25,312 crore as against the target of Rs69,500 crore. 

"The disinvestment would broadbase NBCC's shareholding and enhance the disinvestment receipts for making them available to the government for utilisation as per disinvestment policy," the statement added.

It has also been decided to allot additional shares to the eligible and willing NBCC employees at a discount of 5% to the issue, it said.

NBCC was incorporated on 5 November 1960 as a wholly owned government enterprise with the objective of becoming a leading company in the field of construction, engineering and project management consultancy services.


The NBCC IPO (initial public offer) was launched in March, 2012, when the government divested 10% paid up equity capital of NBCC out of its 100% shareholding and got the company listed on the stock exchanges. The Total Investment & Insurance Solutions

No comments:

Post a Comment