Positive Response To Concor Roadshows

The Container Corporation of India` s (Concor) divestment proposal has recived a positive response from the pre-marketing road shows.

Concor, which proposes to tap the markets with a global depository receipt and a domestic offering, has received the go-ahead to build a common book for the concurrent twin offerings based on the response received.

Sources say the response in the United Kingdom has been ``positive'' and quotes from international buyers are at least 10-20 per cent higher than those received from domestic players. Bids from investors had been received in the range of Rs 325-350. The Concor scrip closed at Rs 378 on the Bombay Stock Exchange yesterday.

A Concor team, alongside the bankers, had undertaken a tour across the UK markets recently to judge the appetite for this offering in weakening market conditions.

A high level meeting of the task force, the company officials and investment bankers Warburg Dillon Read took place recently. It has now been confirmed that the Concor offering will definitely hit the markets before the end of the calendar year. The other three GDR offerings - IOC, GAIL and VSNL - are set to be pushed into the next calendar year.

The total divestment from the government through theinternational and domestic offering will be of 13 million shares. No clear timetable has been set out for the roadshows however. ``A government decision on some of these issues is still awaited. A final decision on the size of the two offerings is set to be taken soon,'' a source said.

Of the Rs 64.9 crore equity, the government holds 77.7 per cent, while the balance is held by the public and FIs. This includes the foreign holding of nearly 15 per cent, with a large chunk being held by Morgan Stanley Growth Fund. Following the divestment, the government holding will come down to 51 per cent. The move would now be to ensure liquidity for which a large enough investor base would be created. ``We do not want a situation where the investors are stuck with the shares...it is critical to ensure tradability,'' the source added.