But despite the sale, the disinvestment in this fiscal will fall short of the revised target of Rs 25,000 crore
The government will sell 5% stake in Container Corporations of India (Concor) at a minimum price of Rs 1,195 a piece, to garner Rs 1,165 crore on Wednesday.
However, the disinvestment – including the seventh one of Concor in the current financial year, will fall short of the revised disinvestment target of Rs 25,000 crore, making it the sixth consecutive year of deficit.
The government has already raised over Rs 18,000 crore through stake sale in six public sector units – Indian Oil (IOC), NTPC, EIL, PFC, REC and Dredging Corporation. In the revised estimates, the government had lowered the disinvestment target for current fiscal to Rs 25,000 crore from the budgeted Rs 41,000 crore.
The floor price set for Concor's offer for sale (OFS) is at a discount of 2.58% over Tuesday's closing price of Rs 1,226.65 of Concor on the BSE. The sale of 97.48 lakh shares at this floor price is expected to fetch about Rs 1,165 crore to the government exchequer.
The company provides logistics support such as inland container depots, container terminals, transportation by rail and road, warehousing, storage and other value added solutions. The government holds 61.8% stake in the rail container company which is under the administrative control of the Railways ministry.
Meanwhile, Indian aluminium company Nalco's plan to buy back up to Rs 3,250 crore ($483 million) of government shares will be delayed to the next fiscal year because of procedural delays, Reuters reported on Tuesday, quoting government officials.
"Buybacks are a long process; you need to complete four to five important procedures," the news agency quoted mines secretary Balvinder Kumar.
The government will miss its divestment target in 2015-16, for the sixth year in a row.
After missing the divestment target for six consecutive years, finance minister Arun Jaitley has lowered the divestment target for 2016-17 to Rs 36,000 crore.
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