The Central government plans to invite bids for Container Corporation of India (CONCOR) in December, following which potential bidders will have around 20 days to submit their bids for the state-owned logistics company, two people close to the development said.
A senior government official said the government is looking to prioritize the divestment of CONCOR and is hopes to invite financial bids in 2022-23.
He added that three or four companies had participated in the second round of the pre-expression of interest (EoI) roadshows held by the Department of Investment and Public Asset Management (DIPAM).
JSW Group, Maersk and Essar Ports have shown interest in bidding for CONCOR, a second government official said.
“The Dipam sub-committee meeting has approved EoI document and the initial bids will be invited soon,” the second official said.
The government aims to complete the process of CONCOR divestment before the end of 2022-23 and hopes to raise Rs 14,000 crore for a 30.8 percent stake in the company.
Five companies, including the Adani Group, DP World and PSA International, had shown interest in the first round of the roadshows.
DIPAM started a pre-EoI roadshow for potential bidders on October 19 to measure investors’ interest in the divestiture process of CONCOR, the company had said in an exchange filing. The roadshow was held virtually until October 21, the filing added.
The Centre currently holds a 54.8 percent stake in CONCOR. The Cabinet Committee on Economic Affairs had, in November 2019, approved the strategic divestment of government equity of 30.8 percent , along with the transfer of management control to a strategic buyer.
Private entities have shown renewed interest in CONCOR just a few months after the central government approved a policy on the long-term leasing of railway land.
The licensing fee had been a source of concern for bidders previously, delaying the disinvestment. CONCOR is considered to be crucial to meet the disinvestment target of Rs 65,000 crore set for the current fiscal year.
CONCOR in 2021-22 posted a net profit of Rs 1,062, crore showing double-digit growth on year. Its topline had risen 18 percent in 2021-22 to Rs 7,858 crore.
CONCOR is also a joint-venture partner in two major container terminals in India, with a 26 percent stake in APM Terminal’s Gateway Terminals India at Nhava Sheva Port and 15 percent in DP World’s Vallarpadam Transhipment Terminal (ICTT) in Cochin.
DIPAM has invited EoIs from potential bidders for strategic divestment of specified Government of India and LIC stakes in IDBI Bank along with transfer of management control. The last date and time for submission of IDBI Bank EoIs is December 16.