The Department of Investment and Public Asset Management (DIPAM) began roadshows with possible investors to advance the disinvestment of the Container Corporation of India (Concor). According to the company, the roadshows will take place virtually between October 19 and 21.
In the filing, it was stated that “Concor is in receipt of a communication from the transaction advisor of DIPAM, Deloitte Touche Tohmatsu India, that roadshows are being organised by DIPAM with potential investors as part of the disinvestment process,” adding that representatives from DIPAM, the Ministry of Railways, and Concor will be present.
According to sources, preliminary negotiations are underway to determine investor interest before the formal procedure is started (presumably in November). The acquisition, though, won’t likely be finished until the next fiscal year.
The action was taken shortly after the Cabinet on September 7 approved a plan for leasing railroad land on a long-term basis in order to carry out PM Gati Shakti’s framework. The Railway Ministry also released a thorough circular on land management policies on October 4 that included a new leasing policy that allows even current players to get a 35-year lease, which, according to analysts, provides additional certainty for the Concor share sale.
The license fee had previously caused bidders to hesitate, which had caused the disinvestment to be postponed. Given the turbulence in the domestic and international markets, the pre-expression of interest meeting will also address any additional concerns investors may have.
The Centre currently owns 54.8 per cent of Concor. The Cabinet Committee on Economic Affairs approved the strategic sale of the government’s 30.8 percent stake in the company, as well as the transfer of management to a strategic buyer, in November 2019.
Concor’s stock price increased 6.94 per cent to close at ₹ 771.15 per share on the BSE. The stake sale might yield more than ₹14,000 based on the company’s market capitalization of ₹ 46,985.73 crores, as of Wednesday. Concor, a Navratna PSU of the Ministry of Railways, specialises in container transportation and logistics. There are 61 container terminals in its network.