New Delhi : Led by LIC, institutional investors bid for twice the number of shares offered by government for 5 % stake sale in logistics firm Container Corp of India Ltd, guaranteeing the exchequer Rs 1,165 crore.
In a flying start to the 2-day offer for sale (OFS), institutional buyers put in bids worth Rs 1,887 crore, as against the total issue size of Rs 1,165 crore.
Bids poured in for 1.57 crore shares or 2.02 times the 77.98 lakh shares offered to institutional investors on day one. Retail investors, for whom 20 % of the issue size of 97,48,710 shares has been reserved, will get to bid today. Shares allocated to retail investors will be at a discount of 5 % to the cut-off price.
At floor price of Rs 1,195 a share, the government is targeting Rs 1,165 crore from sale of its 5 % stake in Concor. “The highlight of the issue has been the encouraging FII (foreign institutional investor) participation of 373.41 crore which work out to be 40% of the non-retail basket,” Disinvestment Secretary Neeraj K Gupta said.
While foreign institutional investors bids for 40 %, insurance companies, both LIC and private insurers, bid for 125 % of the shares on offer. Mutual funds bid for 30 % of the shares, which banks bid for just 1%. Shares of Concor ended 2.54% lower at Rs 1,195.55. Pursuant to the stake sale, government stake in Concor will come down to 56.80 %.
Indicative price offered was Rs 1,196.20 as against the floor price of Rs 1,195 apiece. Concor is the 7th PSU stake sale of the current fiscal and will help the government inch towards the revised disinvestment target of Rs 25,000 crore.
