National Buildings Construction Corporation, has filed a Draft Red Herring Prospectus (“DRHP”) with SEBI on February 9, 2012 for an initial public offer.
The Company proposes to make a public offer of 12,000,000 equity shares of face value of Rs10 each (the “Equity Shares”) through an offer for sale by the President of India, acting through the Ministry of Urban Development, Government of India (the “Selling Shareholder”) for cash, at a price to be determined through the book building process prescribed under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“Offer”). The Offer comprises of a net offer of 11,880,000 Equity Shares (the “Net Offer”) and includes a reservation of 120,000 Equity Shares for subscription by the Eligible Employees (the “Employees Reservation Portion”). A discount of 5% on the Offer Price shall be offered to Retail Bidders (“Retail Discount”) and to Eligible Employees (“Employee Discount”) which can be availed at the time of submitting Bids. The Offer and Net Offer shall constitute 10.00% 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 (“QIBs”) (the “QIB Portion”).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. Further 120,000 Equity Shares shall be available for allocation on a proportionate basis to Eligible Employees, subject to valid Bids being received from them 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. Retail Bidders and Eligible Employees may also participate in this Offer through the ASBA process by providing the details of the bank accounts in which the corresponding Bid amounts will be blocked by the SCSBs.
The Price Band and the Minimum Bid Lot will be decided by the Selling Shareholder and the Company, in consultation with the BRLMs and will be advertised at least two working days prior to the Bid/Offer Opening Date.
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 (“BRLMs”) to the Offer are IDBI Capital Market Services Limited and Enam Securities Private Limited.