8 merchant bankers vie to manage NBCC share sale

New Delhi: As many as eight merchant bankers, including Citibank and Nomura, are vying to manage the sale of 15% government stake in NBCC, which could fetch about Rs.2,100 crore to the exchequer.

The eight merchant bankers, which include SBI Capital Markets, Axis Bank and Edelweiss, will make presentation before the officials of the department of investment and public asset management (DIPAM) on Tuesday.

Others in the fray include ICICI Bank, IDBI Bank and Kotak Mahindra Bank. The government will appoint up to three merchant bankers for the share issue, which could fetch about Rs.2,100 crore to the exchequer at the current market price. Last month the Cabinet had cleared 15% stake sale of NBCC through an offer for sale (OFS). The government is also considering allotting shares to eligible NBCC employees at a discount of 5% to the issue price up to a maximum of 0.75% of the OFS size. The employees will be eligible to apply for shares up to Rs.2 lakh.

Shares of NBCC closed at Rs.239.65, down 0.37% on BSE on Friday. At the current market price, sale of 15% stake could fetch around Rs.2,100 crore to the exchequer. Government currently holds 90% stake in NBCC. NBCC, a CPSE under the ministry of urban development, is engaged construction, engineering and project management consultancy services.