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Taking forward the disinvestment of Container Corporation of India (Concor), the Department of Investment and Public Asset Management (DIPAM) kicked off roadshows with potential investors on Wednesday. The roadshows will be held virtually from October 19-21, the company told exchanges.
“...Concor is in receipt of a communication from the transaction advisor of DIPAM, Deloitte Touche Tohmatsu India, that roadshows are being organised by DIPAM with potential investors as part of disinvestment process,” it said in the filing, adding that representatives from DIPAM, Ministry of Railways and Concor will be part of it.
Sources said initial discussions to gauge investor interest before initiation of the formal process (likely in November) is on. However, the transaction is expected to be completed only in the next fiscal.
Leasing policy
The move comes soon after the Cabinet approved a policy on long-term leasing of railway land for implementing PM Gati Shakti’s framework on September 7. On October 4, the Railway Ministry also issued a detailed circular on land management policy with a new leasing policy under which even existing players can get a 35-year tenure, which analysts said gives more clarity for the Concor stake sale.
The licensing fee had been a source of concern for bidders previously, which had delayed the disinvestment. The pre-expression of interest meeting will discuss any other issues that investors may have and also understand their interest given the volatility in global and domestic markets.
The Centre currently holds 54.8 per cent stake in Concor. The Cabinet Committee on Economic Affairs had, in November 2019, approved the strategic divestment of government equity of a 30.8 per cent stake in the company, along with the transfer of management control to a strategic buyer.
Concor scrip closed 6.94 per cent higher at ₹771.15 apiece on BSE. Based on its Wednesday’s market capitalisation of ₹46,985.73 crore, the stake sale could raise over ₹14,000 crore.
A Navratna PSU of the Ministry of Railways, Concor is engaged in logistics and container transportation. It has a network of 61 container terminals.
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