The price band of NBCC IPO, has been fixed in the range of Rs 90-106 and the issue will hit the markets between March 23 and 27.
The government aims to raise Rs 120 crore by selling its 10% stake in the company.
"The government will dilute 10% [stake]... Rs 120 cr to be raised by NBCC PO," Urban Development Minister Kamal Nath told reporters today after an Empowered Group of Ministers (EGoM) took a decision in this regard.
NBCC shares will be offered in the price band of Rs 90-106 and the listing would happen in April, Nath said, adding that the IPO will hit the market between March 23 and 27.
The EGoM is headed by Finance Minister Pranab Mukherjee.
The government has set an ambitious target to mop-up Rs 40,000 crore from disinvestment of public sector units this fiscal, but due to volatile market conditions, only about Rs 14,000 crore has been realised.
Despite not being able to meet its target in 2011-12, the government plans to sell equity in blue-chip companies like SAIL, MMTC, Neyveli Lignite, Nalco and Oil India, to mop up Rs 30,000 crore in the next fiscal.
As per the Red Herring Prospectus of NBCC filed with the Sebi, the construction major has proposed to make the IPO of 12 million equity shares of face value of Rs 10 each.
NBCC is engaged in the business of providing project management consultancy (PMC) services for civil construction projects, civil infrastructure for power sector and real estate development.
Rating agency CARE has assigned 'IPO Grade 4', indicating above average fundamentals, to the proposed NBCC IPO.
As on January 31, 2012, it has a total order book of Rs 106,13.6 crore for PMC and Civil infrastructure for Power sector businesses together.
In 2010-2011, the company reported a total income of Rs 3,230.7 crore and profit after tax of Rs 140.4 crore.
