Concor stake sale starts, stock slips below floor price

New Delhi: The government's 5 percent stake sale in the Container Corporation of India (Concor) on bourses began today even as the scrip followed the broader market trend and slipped over 3 percent going below the floor price.

The floor price of Rs 1,195 for the offer for sale (OFS) was at a discount of 2.58 percent over yesterday's closing price of Rs 1,226.65 of Concor on BSE.

However, in morning trade, the scrip lost Rs 40 a share, or 3.33 percent, to a low of Rs 1,185.80.

The OFS is open for institutional investors today. The government is selling over 77.98 lakh shares in Concor to institutional investors at the floor price of Rs 1,195.

The remaining over 19.49 lakh shares will be sold to retail investors tomorrow. Retail investors, who will be allocated shares at a discount of 5 percent to the cut-off price, are individual investors who place bids for shares of total value of not more than Rs 2 lakh.

The government is selling up to 97,48,710 equity shares of Concor representing 5 percent of the total paid-up equity share capital.

The sale of 97.48 lakh shares at this floor price will fetch about Rs 1,165 crore to the exchequer.

Concor is the seventh PSU stake sale of the current fiscal and will help the government inch towards the revised disinvestment target of Rs 25,000 crore.

The government holds 61.80 percent stake in the logistics company which is under the administrative control of the Railways ministry.

Kotak Securities, ICICI Securities and Citigroup Global Markets India Pvt 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.

In the revised estimates, the government has lowered the disinvestment target for the current fiscal to Rs 25,000 crore from the budgeted Rs 41,000 crore.