Concor stake sale: Institutional portion oversubscribed

Government's sale of 5 per cent stake in logistics firm Concor got off to a robust start today with institutional investors bidding for twice the number of shares reserved for them, ensuring inflow of Rs 1,165 crore to the exchequer irrespective of retail buyers' response.
The Offer for Sale (OFS), staggered over two days, saw bids pouring in for 15.8 million shares as against 7.78 million shares offered to institutional investors on day one, according to the NSE data.
The demand totalled 202 per cent of shares offered, the data showed.
Indicative price offered was Rs 1,196.12 as against the floor or minimum price of Rs 1,195 apiece.

Retail investors, for whom 20 per cent of the issue size of 97,48,710 shares has been reserved, will get to bid tomorrow.
As many as 1.94 million shares have been reserved for retail investors, who will be allocated shares at a discount of 5 per cent to the cut-off price. Retail investors are individuals who place bids for shares of total value of not more than Rs 2 lakh.

At floor price, the government is targeting Rs 1,165 crore from sale of its 5 per cent stake in Concor. Any unsubscribed portion of retail investor would be allocated to institutional buyers, and going by the bids that poured in today the government is guaranteed a full sell off.

The floor price of Rs 1,195 for the offer for sale (OFS) was at a discount of 2.58 per cent over yesterday's closing price of Rs 1,226.65 of Concor on BSE.
The sale of 9.74 million 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 per cent stake in the logistics company, which is under the administrative control of the railway ministry.
Kotak Securities, ICICI Securities and Citigroup Global Markets India Pvt are lead managers of the issue.

The Container Corporation of India, or 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.