Government on Wednesday to sell 5% stake in Container Corporations of India (Concor) at a base price of Rs 1,195 a piece, which may fetch it an estimated Rs 1,165 crore. The floor price for the Offer For Sale (OFS) is 2.58% below the company’s current share price, which closed at Rs 1,226.65 on the BSE on Tuesday.
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In a regulatory filing, the company said the government will sell up to 97,48,710 shares, representing 5% stake, tomorrow for non-retail investors, while retail investors can bid in the share sale a day after.
“20% of the offer size shall be reserved for retail investors,” the filing said. Retail investors would be allocated shares at a 5% discount to the cut-off price. Such investors can bid for shares worth up to Rs 2 lakh.
“No single bidder other than mutual funds and insurance companies shall be allocated more than 25% of the offer shares,” the company said.
Any unsubscribed portion of the retail category, after allotment, will be eligible for allocation in the non-retail category. The sale of 97.48 lakh shares at this floor price would fetch about Rs 1,165 crore to the exchequer.
Concor will be the seventh disinvestment in the current fiscal and will help government further fill the gap to the revised disinvestment target of Rs 25,000 crore. Government holds 61.80% stake in the logistics company which is under the administrative control of the Railways Ministry.
Kotak Securities Ltd, ICICI Securities Ltd and Citigroup Global Markets India Pvt Ltd are lead managers of the issue. Concor provides logistics support such as inland container depots, domestic container terminals, transportation by rail and road, warehousing, storage and other value added solutions.
The government has already raised over Rs 18,000 crore through stake sale in 6 PSUs — IOC, NTPC, EIL, PFC, REC and Dredging Corporation — this fiscal. In the revised estimates, the government has lowered the disinvestment target for current fiscal to Rs 25,000 crore from budgeted Rs 41,000 crore.