NBCC files IPO papers with SEBI

A public sector company National Buildings Construction Corporation (NBCC) has filed a draft red herring prospectus with SEBI on February 9, 2012 for initial public offer of 1.2 crore equity shares of Rs 10 each. The company is engaged in the business of project management consultancy services for civil construction projects, civil infrastructure for power sector and real-estate development.

The IPO includes an offer for sale by the President of India, acting through the Ministry of Urban Development, Government of India (selling shareholder) for cash, at a price to be determined through the book building process. The offer comprises of a net offer of 11,880,000 equity shares and includes a reservation of 120,000 equity shares for subscription by the eligible employees.

A discount of 5% on the offer price shall be offered to retail bidders and to eligible employees. The offer and net offer shall constitute 10% and 9.90% of the post-offer paid-up equity share capital of the company respectively.

Not more than 50% of the net offer will be allocated to the qualified institutional buyers. Further, 5% of the QIB portion shall be available for allocation on a proportionate basis to mutual funds only. The remainder of the QIB portion shall be available for allocation on a proportionate basis to QIBs including mutual funds, subject to valid Bids being received from them at or above the offer price. In addition, not less than 15% of the offer will be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the offer will be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the offer price.

It is mandatory for all QIBs and non-institutional bidders to participate in the offer through the ASBA process. 

The equity shares offered through the offer are proposed to be listed on the National Stock Exchange of India Limited and the BSE Limited. 

The book running lead managers to the Offer are IDBI Capital Market Services Limited and Enam Securities Private Limited.