Concor OFS fully subscribed; govt gets Rs 1,165 cr

MUMBAI: The Rs 1,165-crore offer for sale (OFS) in Container Corporation of India (Concor) by the government received strong response from retail investors with the offer subscribed 2.84 times on the second day. On Thursday, the issue was opened for subscription exclusively to retail investors.

A day after institutional investors put in bids for twice the number of shares on offer, retail investors bid for over 35.86 lakh shares, or 1.84 times of the 19.49 lakh shares reserved for them. A 5% additional discount was offered to retail investors. The retail portion in the previous OFS of NTPC on February 23 remained unsubscribed. However, the share price fell 2.71% to Rs 1,163.15 on Thursday. The government sold over 97.48 lakh shares, or 5%, in Concor at a floor price of Rs 1,195. Of this, over 77.98 lakh shares were offered to institutional investors on Wednesday. Institutional investors’, including FIIs and insurance companies, portion was subscribed 2.02 times.

Concor is the second disinvestment by the government since January 1 this year. With this, the government has mopped up Rs 19,517 crore through stake sale in seven PSUs. The government has already sold stake sale in IOC, NTPC, EIL, PFC, REC and Dredging Corp so far in the current fiscal.

The government has lowered the disinvestment target for the current fiscal to Rs 25,000 crore in the revised estimates, from the budgeted Rs 41,000 crore.