New Delhi, Aug 11 (IANS) The government Thursday approved divestment of 10 percent of its equity holding in state-run construction and engineering firm National Buildings Construction
Corporation Limited (NBCC).

In a decision announced late Thursday, the Cabinet Committee on Economic Affairs said it would offload the stake through an initial public offering. The government holds 100 percent of the equity in NBCC, which comes under the urban development ministry and operates in the area of real estate.

"This will lead to NBCC listing its shares in the Stock Exchanges. A portion of the shares to be offered for sale through IPO shall be reserved for the employees of the company," said a cabinet note.

Employees of the company and retail industry will get a five percent price discount on the offer price.

The paid-up equity capital of the company is Rs.90 crore.

The government aims to earn Rs.40,000 crore by way of investing stake in public-run enterprises and has already raised over Rs.1,160 crore by offloading or by selling 5 percent of its stake in power finance corporation.

It has already approved divestment in Steel Authority of India Limited (SAIL), Oil and Natural Gas Corporation (ONGC) and Hindustan Copper Ltd (HCL) in the current financial year.