New Delhi, Dec 17 (IANS) State-run Concor, which is up for strategic disinvestment, is currently meeting investors amd making pitch for its successful stake sale amid reports of Adani group showing interest in the railways arm.
As part of the process, officials of disinvestment department DIPAM and Niti Aayog met on Monday to discuss the course of action to be taken after the Cabinet approval for sale of 30 per cent of government equity in the company in favour of strategic investor.
Sources said that roadshows are planned for Container Corporation of India’s (Concor) disinvestment later this month and early January. Potential investors have already been informed to be ready with their proposals.
The investors’ feedback and concerns will be used to prepare the expression of interest for the Concor sale, said sources.
Another source said in case of Concor, there are title issues. Its facilities are mostly built on land leased from the government or owned by the railways, at concessional rates.
According to sources, Concor being the largest container train operator in India has much to offer, and is drawing enough interest from potential investors including the Adanis.
Adani Ports and Special Economic Zone Ltd had told analysts that it will consider buying the government’s stake in Concor, said sources.
L&L Partners has been appointed as legal advisor for partial divestment of Concor last week. Besides, Deloitte Touche Tohmatsu India has been roped in as transaction advisor and RBSA Valuation Advisors LLP as asset valuer by Department of Investment and Public Assets Management (DIPAM).
The government, which is looking to sell a 30 percent stake in Concor to strategic investors, owns 54.8 percent stake in the company.
At current market price, the company is valued at Rs 19,000 crore. Its share price on Tuesday was Rs 575.35 , plus 2.35 (0.41 per cent).
The Cabinet Committee on Economic Affairs last month accorded “in-principle” approval for strategic disinvestment of the government’s shareholding of 30.8 per cent in Concor. Presently, the government holds 54.8 per cent stake in Concor, which comes under the Railways Ministry.