Govt initiates Concor divestment process

The government has kick-started the process of disinvesting 5 per cent more in Container Corporation of India Ltd (Concor).

The Department of Disinvestment has invited bids from merchant bankers to take forward the proposal to disinvest an additional 5 per cent in the Navaratna public sector unit, said a document on the Ministry’s website. The government holds 61.8 per cent in Concor, the only listed public sector unit of the Railway Ministry.

Concor’s shares were trading at ₹1,403.7, as on November 13. Its shares has touched a 52-week high of ₹1,944, and hit a 52-week low of ₹1,204.4, according to Bombay Stock Exchange.

“The government intends to disinvest 5 per cent paid-up equity capital (97,48,710) shares each of face value of ₹10 of Concor… through Offer-for-Sale (OFS) of shares by promoters through the Stock Exchanges’ method, as per Securities and Exchange Board of India (SEBI) Rules and Regulations,” the document on the Ministry’s website said.

“The government is also considering allotting shares to employees of Concor at a discount of 5 per cent to the issue/discovered price (lowest cut-off price) up to a maximum of 0.25 per cent of the paid-up equity capital subsequent to completion of the transaction under offer for sale… The employees will be eligible to apply for shares up to ₹2 lakh only,” the document said.

Concor, which was started in 1988 as the only firm with the right to move container trains, now operates in a competitive environment, but still holds over 70 per cent of the containerised rail market. It has turned into an end-to-end logistics player with 63 terminals countrywide, cold-chain logistics, and private freight terminals.

The private freight terminals, which allow players to handle cargo other than containers, gives Concor a bite of the non-containerised cargo pie.

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