New Delhi, July 13: The Cabinet here on Wednesday approved 15 per cent divestment of the government's stake in National Buildings Construction Corporation Limited (NBCC) aiming to collect approximately Rs 1,706 crore.
"The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the disinvestment of 15 per cent paid up equity of NBCC out of government's 90 per cent shareholding," the Union Finance Ministry said in a statement.
The balance 10 per cent of the equity is held by the public.
"It would result in estimated receipts of approximately Rs 1,706 crore to the government. However, the actual realisation amount will depend upon the market conditions and the investor interest prevailing at the time of actual disinvestment," the statement said.
The government aims to generate Rs 56,500 crore through disinvestment in PSEs this financial year
During 2015-16, the government could manage to meet less than half the budget estimates at Rs 25,312 crore as against the target of Rs 69,500 crore.
"The disinvestment would broadbase NBCC's shareholding and enhance the disinvestment receipts for making them available to the government for utilisation as per disinvestment policy," the statement added.
It has also been decided to allot additional shares to the eligible and willing NBCC employees at a discount of 5 per cent to the issue, it said.
NBCC was incorporated on November 5, 1960 as a wholly owned government enterprise with the objective of becoming a leading company in the field of construction, engineering and project management consultancy services.
The NBCC IPO (initial public offer) was launched in March, 2012, when the government divested 10 per cent paid up equity capital of NBCC out of its 100 per cent shareholding and got the company listed on the stock exchanges.