NSE Symbol: NBCC | BSE Code: 534309
NBCC (India), previously National Buildings Construction Corporation Ltd, is a blue-chip Government of India Navratna Enterprise according to MHUA or the Ministry of Housing and Urban Affairs. The company's present areas of services are categorized under three main segments, namely, Real Estate Development, Project Management Consultancy (PMC) and EPC Contracting. NBCC has been administering many Landmark Projects as a PMC that provides for about 90% of its annual revenue. This portion being the company's core strength, the areas covered under its umbrella include construction of government properties, institutions, roads, bridges, airports, etc.
NBCC has been exploring in Infrastructure Segment as well known as EPC, wherein it has been taking up projects such as the construction of Cooling Towers, Chimneys, and different types of Power Plant facilities.
National Buildings Construction Corporation Ltd was consolidated on November 15, 1960, as a private company. The company was established in the form of a wholly owned Government of India project under the earlier Ministry of Works, Housing & Supply (MoWHS), that is presently known as the Ministry of Urban Development (MoUD). The GoI currently holds 73.69% stake in NBCC (India).
On May 24, 2011, it was transformed into a public limited company. On October 14, 2008, Government of India conferred it the Schedule A PSU status. The company had also been awarded ISO 9001:2008 from the Bureau of Indian Standards for their leading consultancy and project management division. In the same year, they also won 'Excellent' rating from MoUD for every Fiscal year starting from 2004 to 2010 and the Ministry of Heavy Industries & Public Enterprises has granted them with an Excellence Award as well.
In 2011, for one of the PMC projects, they were conferred with an Appreciation Shield for sound quality and timely completion of NSEZ Noida Project. In this project, the company completed 43 PMC projects in India during the period; April 2006 - January 2012.
NBCC completed 11 robust infrastructure for the power sector in the period of 2006-2012.
By January 2012, the company had completed eight real estate development projects.
In March 2012, the company issued an IPO of 12,000,000 shares via Book Building for its listing in stock exchanges. The company's IPO oversubscribed around 4.9 times on the final day of subscription and it got listed at the primary stock Exchanges indices of India, BSE and NSE in April 2012.
The company has been granted the 'Mini Ratna category - I,' which is a status granted on the basis of performance of a company upon fulfilling the guidelines and rules directed by the department of public enterprises in the year under review.
In 2013, the company won several prestigious awards such as:
Real Estate Awards 2013,
Engineering Excellence Award 2013,
Special Jury Governance Now PSU Awards 2013
In 2014 the company won multiple awards as well, like:
India Public Sector Enterprises Awards for Excellence-2014,
NAR: EDCO NATIONAL REAL ESTATE AWARD 2014,
Dun & Bradstreet Infra Awards 2014 etc.
In the same year, the company was conferred with the Navratna status.
In 2015, the company signed a Memorandum of Understanding with the DDA for development of East Delhi Hub at Karkardooma. The company also signed a project-specific MoU with NAWADCO.
later in the year, the company was presented with the International Excellence Award and it even got awarded for its 'Green Buildings' initiatives and for 'Business Excellence' and 'Housing Innovation Excellence.'
In December 2015, National Buildings Construction Corporation announced the embodiment of a wholly owned subsidiary company in the name of NBCC Engineering & Consultancy Limited to procure engineering and consultancy services of all kinds linked with construction and development of different types of buildings including residential, commercial and industrial. It was also a part of the smart city projects conceptualized by the Government of India.
The NBCC Board of Directors in a meeting held in March 2016 discussed and approved the recommendation for the splitting of one equity share of face value of 10 rupees into 5 equity shares with the face value of Rs 2 each.
In March 2016, National Buildings Construction Corporation declared that the Board of Directors of the company had accorded in-principle approval for talking over Hindustan Steelworks Construction Limited (HSCL) after fixing its balance sheet which included waiving off of government loans and also extending further contribution for contingent liabilities and complete payment of other liabilities.
The company was then renamed from National Buildings Construction Corporation Limited to NBCC (India). Ministry of Corporate Affairs issued a Certificate of Incorporation to the company approving the change of name. Goa Shipyard Ltd. signed a Memorandum of Agreement (MOA) with NBCC (India) in August 2016 for consigning the construction of Office Building for Mine Counter Measure Vessels (MCMV) and additional space in the Yard of Goa Shipyard, Goa valued at 100 crores. The Board of Directors of NBCC at a meeting held in January 2017 made recommendations in the issue of bonus shares with the ratio of 1 bonus per share for every two equity shares held on the date recorded.
Fair Trade Regulator and Competition Commission of India (CCI) in the meeting held in March 2017 favored the proposal of NBCC (India) to procure Hindustan Steelworks Construction Ltd. (HSCL). The Board of HSCL allotted 35.7 crores worth equity share capital to NBCC in April 2017. With this acquisition, NBCC added a new vertical to its business operation enhancing its portfolio and in turn reinforcing its position as a preeminent construction company of the country. It can be reconvened that in May 2016, the Cabinet had endorsed the proposal for restructuring HSCL and it was also prompt in supporting its takeover by NBCC (India). HSCL was incorporated in 1964 under the Steel Ministry for undertaking construction work linked with steel plants. It is presently involved in the construction of buildings and infrastructure besides steel plants and has also forayed into several activities in the mining sector. In April 2017, NBCC (India) Ltd. and Bolix, a company based in Poland, signed a Memorandum of Business Exploration (MOBE) for collectively promoting, adopting and developing the External Thermal Insulation and Composite Systems (ETICS) Solutions Technology in the construction of energy efficient green/smart buildings in India. ETICS Technology is a sturdy and long-lasting building energy performance solution which was developed to prevailing standards over the last 40 years.
In July 2017, NBCC (India) declared that it had consolidated a wholly owned subsidiary namely NBCC International Limited for carrying out the construction, real estate and project management consultancy business overseas.
In the same month, NBCC (India) declared that it had incorporated a wholly owned subsidiary namely NBCC Environment Engineering Limited for carrying out the business in the area of environment and sustainability. The Board of Directors of NBCC in the meeting held in February 2018 recommended the splitting of the company's equity shares of Rs 2 each into two equity shares with the face value of Rs 1 each subject to the consent of the shareholders of the company.
In March 2018, NBCC (India) Ltd. proclaimed its diversification in the road construction space. The company endorsed an initial agreement with the Ecotourism Development Corporation of Uttarakhand Ltd (EDCUL) for constructing an eco-tourism circuit in Uttarakhand, India.
In June 2018, NBCC stated that it had submitted a bid in response to the solicitation by the Department of investment and Public Asset Management (DIPAM), Government of India for the strategic disinvestment of HSCC (India) Limited (HSCC) and Engineering Projects (India) Limited (EPIL).
In June 2018, NBCC notified the stock exchange indices that it had sold its office space located in the NBCC Centre, Okhla, Phase-1, New Delhi to M/s Balmer Lawrie & Co. The Profit margin available to NBCC in the deal was nearly 55 crores.
In the first quarter for Financial year 2018-19, the consolidated profit for the company increased by around 23% as compared to the previous quarter.
You must go through the Pros and Cons of investing in NBCC shares before investing in the company. The positive sides of investing in NBCC shares are:
The company has substantially reduced the debt
The company is technically debt-free
It has been maintaining a healthy dividend payout of around 37% for the last few quarters
The major stumbling block in investing in NBCC share is that the earnings of the company include other income worth â‚¹124.23 Cr.
The highest level that the NBCC share price has reached this year was 126.68 in the month of January and the lowest point that the NBCC share price reached was â‚¹61.75.