The department of investment and public asset management (DIPAM) has begun roadshows in Canada and Singapore to garner investments for Container Corporation of India, which will be undergoing strategic divestment. Officials in the know said the first round of roadshows is being held in Toronto, Canada, this week, while the second round may be held in Singapore next week.
They said investor interest is being determined through the roadshows, which will be followed by detailed expressions of interest and formal proposals.
The government, which owns a 54.8% stake in Concor—the largest container train operator in India—through the ministry of railways, is looking to sell 30.8% stake in it to investors on a strategic basis. The Cabinet Committee on Economic Affairs had approved strategic divestment of the company in November last year.
On Friday, shares of Concor closed 0.28% higher on the BSE at Rs 563.10.
The department has appointed L&L Partners as legal advisor for partial divestment of Concor, WHILE Deloitte Touche Tohmatsu India has been roped in as transaction advisor and RBSA Valuation Advisors LLP as asset valuer by the department.
According to some reports, Adani Ports and Special Economic Zone Ltd had told analysts that it will consider buying the government’s stake in Concor. However, this could not be independently verified.
The roadshows for Concor come close on the heels of those for another government backed company—Bharat Petroleum Corporation Ltd—as the government struggles to meet its divestment target of Rs 1.05 lakh crore for 2019-20. Till now the department has been able to raise only Rs 17,364 crore.