Shares of Container Corporation of India (CONCOR) rallied over 14 per cent today after the Cabinet approved the new rail land lease policy. The policy has been approved for a period of 35 years against the current five years. Under the policy, the land lease fee has also been reduced to 1.5 per cent from the 6 per cent fee currently. According to some estimates, the reduction in fees will increase earnings per share by 10 to 15 per cent.
The new land lease policy will facilitate privatisation of Container Corporation of India in which the central government held 54.80 percent stake or 33.38 crore shares at the end of June quarter.The policy will attract private investors towards buying stake in the railways' arm during the divestment process.
Reacting to the development, Concor shares zoomed 14.51 per cent to their all-time high of Rs 766.3 against the previous close of Rs 669.20. Container Corp shares stand higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has gained 17.78 percent this year but lost 0.03 percent in a year. Later, the Concor stock closed 8.58 per cent higher at Rs 726.65 on BSE.Market cap of the firm rose to Rs 44,274 crore.
A total of 5.05 lakh shares of Container Corporation changed hands amounting to a turnover of Rs 36.79 crore on BSE.
Container Corporation of India Limited (CONCOR), an arm of Indian Railways, is engaged in transportation of containers (rail and road), and handling of containers. The company is also engaged in the operation of logistics facilities, including dry ports, container freight stations and private freight terminals.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today