 "Concor share sale subscribed two times")
The Rs 1,165-crore offer for sale in Container Corporation of India (Concor) saw two times demand in the shares on offer on Wednesday. Nearly 7.8 million shares meant for non-retail investors - institutional investors and high net worth individuals - received 15.8 million bids, according to BSE data.
Most of the bids came at Rs 1,196.2 a share, compared to the base price of Rs 1,195 apiece set by the government to divest five per cent of its holding in the logistics company.
Concor shares fell 2.5 per cent to end at Rs 1,195.6 apiece on the BSE on Wednesday. Following the divsetment, the government’s holding in the company will decline to 56.8 per cent.
Another 1.95 million shares meant for retail investors will be auctioned on Thursday. The Centre is offering five per cent additional discount on allotment price to retail investors.
If the retail portion remains under-subscribed, investors who have opted to carry forward their bids on Wednesday will be given the unallocated shares.
Given the huge oversubscription on Wednesday, the share sale will be fully covered even if retail portion doesn’t see enough demand, said investment bankers.
Kotak Securities, ICICI Securities and Citigroup Global Markets are the banks handling the Concor share sale.
Including Concor, the government has moped up Rs 19,500 crore as part of the 2015-16 disinvestment programme.
Last month, the Centre had raised around Rs 5,000 crore by divesting stake in power utility NTPC Ltd.
