Seventh CPSE Disinvestment of FY 2015-16: CONCOR (Non-Retail Basket) OFS gets Oversubscribed 2 Times

The Seventh CPSE disinvestment of the fiscal year 2015-16 took place today with the CONCOR (Non-Retail basket) OFS getting oversubscribed by 2 times.

On offer was 5% paid-up equity capital of the company comprising 97,48,710 shares, each of Face value of Rs 10. Out of the shares on offer for sale, 20% are reserved for retail investors. At the end of the day with total subscription of Rs 1887.12 crore, the issue stood oversubscribed by two times.

The indicative price was Rs 1196.20 which is above the floor price. The previous day (08/03/2016) closing price was Rs 1226.65 (BSE)/ Rs 1226.5 (NSE) and floor price was fixed at Rs 1195.

The highlight of the issue was the encouraging FIIs participation of Rs 373.41 crore which works-out to be 40% of the non-retail basket.

With this disinvestment, the Government of India's share in CONCOR will come down to 56.80%.

As per the new SEBI guidelines, only non-retail investors were allowed to place their bids today (T Day) for 80% of non-retail portion. On offer was 77,98,968 equity shares which amount to Rs 932 crore at floor price.

The retail investors shall bid tomorrow (T+1) for 20% of the portion reserved for them, i.e. 19,49742 equity shares of the Company amounting to Rs 233 crore at Floor price. They will have the option to place a price bid or opt for bidding at cut-off price. The new arrangement provides retail investors the benefit of discovering the cut-off price of T day and place their bids on T+1 day on a more informed basis than was the case earlier. As usual retail investors i.e. those investors who place bids for shares of total value of not more than Rs 2.00 lakh, will in addition be entitled to a 5% discount. The discount to retail investors shall be applicable to bids received tomorrow (T+1).

Unsubscribed portion of the shares reserved for retail investors shall be allocated to non retail bidders on T+1 day at a price equal to cut off price or higher as per bids. In this regard, option shall be provided to such non retail bidders to indicate their willingness to carry forward their bids to T+1 day. Effectively the bidding for the OFS will remain open for two days.

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