NBCC moves higher after Cabinet Committee approves Govt’s stake divestment

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NBCC (India) was up 1.61% to Rs 233.50 at 9:49 IST on BSE after the Cabinet Committee on Economic Affairs approved disinvestment of 15% paid up equity of the company out of Government of India’s 90% shareholding.
The announcement was made after trading hours yesterday, 13 July 2016.

Meanwhile, the S&P BSE Sensex was almost unchanged at 27,816.13.

On BSE, so far 3.69 lakh shares were traded in the counter as against average daily volume of 1.51 lakh shares in the past one quarter. The stock hit a high of Rs 242 and a low of Rs 231 so far during the day. The stock had hit a record high of Rs 267 yesterday, 13 July 2016. The stock had hit a 52-week low of Rs 162 on 12 February 2016. The stock had outperformed the market over the past one month till 13 July 2016, surging 23.09% compared with 5.37% rise in the Sensex. The scrip had also outperformed the market in past one quarter, advancing 15.96% as against Sensex’s 8.54% rise.

The large-cap company has equity capital of Rs 120 crore. Face value per share is Rs 2.

The NBCC (India) stock slumped 10.72% to settle at Rs 229.80 yesterday, 13 July 2016, as investors awaited details regarding the quantum of the stake sale after media reports suggested that the government had approved divestment in the state-run firm. The divestment of stake will be carried out through the offer for sale (OFS) route via the stock exchanges mechanism. In order to inculcate a sense of belongingness amongst the employees of NBCC, GoI has decided to allot additional shares to the eligible and willing employees of the company at a discount of 5% to the issue/discovered (lowest cut off) price of the OFS. NBCC (India) is engaged in construction, engineering and project management consultancy services.

The Government of India currently holds 90% stake in NBCC (India) (as per shareholding pattern as on 31 March 2016).

On a consolidated basis, net profit of NBCC (India) rose 5.9% to Rs 141.48 crore on 38.8% rise in net sales to Rs 2251.14 crore in Q4 March 2016 over Q4 March 2015.