Concor share sale raises more than Rs1,165 cr on Day 1

10 Mar 2016

1

The government has raised the full amount of an expected Rs1,165 crore from the share sale of Container Corporation of India (Concor) with non-retail basket of the 5 per cent equity of the company on offer getting subscribed by over twice.

The Seventh CPSE disinvestment of the fiscal year 2015-16 took place that started on Wednesday, saw the non-retail basket of Concor OFS (offer for sale) getting oversubscribed by 2 times.

At the end of the day's trading on Wednesday, with total subscription of Rs1,887.12 crore, the non-retail portion of the issue stood oversubscribed by two times.

The sale of 5 per cent paid-up equity capital of the company comprising 97,48,710 shares, each of face value of Rs10 opened on Wednesday.

Out of the shares on offer for sale, 20 per cent are reserved for retail investors.

The indicative price was Rs1,196.20, which stood above the floor price. The previous day's closing price was Rs1,226.65 on the BSE and Rs1,226.5 on the NSE and floor price was fixed at Rs1,195.

The issue saw encouraging FII participation with subscription of Rs373.41 crore, which works out to be 40 per cent of the non-retail basket.

With this disinvestment, the government of India's share in Concor will come down to 56.80 per cent.

As per the new Sebi guidelines, only non-retail investors were allowed to place their bids on Wednesday (T Day) for 80 per cent of non-retail portion. On offer was 77,98,968 equity shares which amount to Rs932 crore at floor price.

The retail investors will be bidding today (T+1) for 20 per cent of the portion reserved for them, ie, 19,49742 equity shares of amounting to Rs233 crore at floor price. They will have the option to place a price bid or opt for bidding at cut-off price. The new arrangement provides retail investors the benefit of discovering the cut-off price of T day and place their bids on T+1 day on a more informed basis than was the case earlier.

As usual retail investors, ie, those investors who place bids for shares of total value of not more than Rs2 lakh, will in addition be entitled to a 5 per cent discount. The discount to retail investors shall be applicable to bids received today (T+1).

Unsubscribed portion of the shares reserved for retail investors will be allocated to non-retail bidders on T+1 day at a price equal to cut off price or higher as per bids. In this regard, option shall be provided to such non retail bidders to indicate their willingness to carry forward their bids to T+1 day. Effectively the bidding for the OFS will remain open for two days.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers