NBCC IPO subscribed nearly five times on last day

After the ONGC share sale fiasco,the government can have a small consolation

Written by ENS Economic Bureau | Mumbai | Published: March 28, 2012 1:10:03 am

After the ONGC share sale fiasco,the government can have a small consolation.

A flood of bids from institutional and retail investors on the last day on Tuesday saw public sector National Buildings Construction Corporation’s initial share sale offer getting subscribed by 4.82 times.

The IPO,which opened on March 22,garnered total demand for over 5.78 crore shares,worth over Rs 612 crore,against 1.2 crore equities on offer,according to the data available on the stock exchanges.

The category reserved for retail investors was subscribed 3.1 times,while the portion meant for qualified institutional buyers (QIB) was subscribed 7.07 times. High net-worth individual (HNI) portion attracted bids 1.7 times the shares on offer. The issue was subscribed 58.30 per cent till Monday.

NBCC is the government’s third and last disinvestment candidate in the current fiscal,after follow-on public offer of Power Finance Corp (PFC) in May 2011 and sale of shares through a one-day auction of ONGC earlier this month. The government has raised a total of Rs 13,894 crore from PFC’s FPO and ONGC share sale.

The price band of the IPO has been fixed at Rs 90-106 per share.

At the lower end,the government would raise about Rs 108 crore while at the upper band about Rs 127 crore would be garnered from the offer.

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