Concor gets the "OFS blues"

Container Corporation of India or Concor, a PSU enterprise is down in the red today morning. The stock which has closed at Rs.1226.65, opened lower at Rs.1200.05, going down further to Rs.1185.80.

The stock is down, with the markets not happy with the Offer For Sale (OFS) price. Usually, when it’s a company from the private sector, it is offered at a hefty premium but here, always, OFS of PSUs happen at a discount.

The Govt is selling 5% stake and the price has been fixed at Rs.1195/share, a discount of 2.58% over yesterday’s close. The OFS began today for institutional investors and for retail, it will open tomorrow. Retail investors will be allocated shares in OFS at a discount of 5% to the cut off price.

Government holds 61.80% stake in the logistics company which is under the administrative control of the Railways Ministry.