Government's five per cent stake sale in Container Corporation (Concor) opened for bidding by retail investors on Thursday with a subscription of nearly 2 lakh shares in the early hours of trade.
However, Concor shares slipped below the floor price of Rs 1,195 in a weak market and were trading 1.12 per cent down at Rs 1,182.20 a piece on the BSE.
The government is selling over 97.48 lakh shares or 5 per cent stake in Concor at a floor price of Rs 1,195 a piece. Of this, over 77.98 lakh share were offered to institutional investors yesterday.
Bidding for the remaining over 19.49 lakh shares began this morning. According to the NSE data, subscription for over 1.98 lakh shares or 10 per cent came in by 10.45 am.
A five per cent additional discount is being offered to retail investors, classified as those bidding for shares worth up to Rs 2 lakh.
At a floor price of Rs 1,195 a piece, sale of over 97.48 lakh shares would fetch Rs 1,165 crore to the exchequer.
Institutional investors, including FIIs and insurance companies, gave a thumping start to the Concor stake sale yesterday with the portion offered to them getting over- subscribed 2.02 times. Total bids worth Rs 1,187 crore came in from these buyers.
Bidding by retail investors would continue till 3.30 pm.
This is second disinvestment in a fortnight as government races to meet the revised target of Rs 25,000 crore. Concor is the seventh PSU stake sale of the current fiscal. Earlier, the government had budgeted Rs 41,000 crore from such proceeds for the current fiscal ending this month.
The government has already raised Rs 18,352 crore through stake sale in IOC, NTPC, EIL, PFC, REC and Dredging Corp.
Concor falls under the administrative control of the Railway Ministry and provides logistics support such as inland container depots, domestic container terminals, transportation by rail and road, warehousing, storage and other value-added solutions.