Centre plans to sell 5% stake in Container Corp

NEW DELHI: The government has initiated the process of 5 per cent stake sale in Container Corporation of India (CONCOR), which could fetch over Rs 1,300 crore to the exchequer.

The Department of Disinvestment has initiated the process of engagement of merchant bankers and selling brokers for selling 5 per cent stake through the offer for sale (OFS) route.

Government holds 61.80 per cent stake in the logistics company which is under the administrative control of the Railways Ministry.

At current stock price of Rs 1,414.90, the sale of 5 per cent stake would garner over Rs 1,300 crore to the exchequer.

"The GOI intends to disinvest 5 per cent paid up equity capital of CONCOR...through OFS of shares by promoters through the stock exchanges method as per Sebi rules," DoD said while inviting merchant bankers to bid for managing the stake sale.

The merchant bankers have to submit their bids by December 2, following which the DoD would select up to three bankers for managing the disinvestment.

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 budgeted to raise Rs 69,500 crore through PSU disinvestments. Of this Rs 41,000 crore is to be raised through minority stake sale in PSUs and another Rs 28,500 crore through strategic sale.

With seven months of the fiscal over, the government has been able to raise Rs 12,600 crore through stale sale in four PSUs as volatile market conditions have dented disinvestment plans.