The government has decided to split national building construction corporation's existing shares of Rs 1,000 face value into ten shares of Rs 100 each with a view to attract more retail investors to NBCC's proposed 10 per cent initial public offering.
"The disinvestment of NBCC will be 10 per cent through the book building route," Department of Disinvestment Director (DoD) Rajib Kr Sen told PTI.
"We have already sent a note for feedback to different ministries like urban development, law and finance. Once we receive them, we will seek Cabinet approval," he said.
Sen expected that the proposal could be placed before Cabinet in the next fortnight.
The government has decided to split the existing shares of the company with a face value of Rs 1000 each into ten shares of Rs 100 each to attract greater retail investor participation.
The process of splitting the shares is expected to take place in a month's time, he said.
The paid up capital of the company is Rs 90 crores and the government holds a 100 per cent stake.
The DoD has begun the process of appointing book-running lead managers for the IPO and has sought RFQs for such appointment.
NBCC was incorporated as a public limited company in November, 1960, under the aegis of the ministry of urban development. The order book of the company currently stands at Rs 8,000 crores.