Government Halts Conorcorp Privatisation Amid Investor Concerns

The Indian government has paused the privatisation of Container Corporation of India Ltd (Concor) due to concerns from the Railways Ministry and investors. Despite Cabinet approval in November 2019 for a strategic sale of a 30.8% stake, no significant progress has been made. Shares of Concor rose by 0.35% on the BSE.

The Indian government has put the privatisation of Container Corporation of India Ltd (Concor) on hold, according to an official source.

In November 2019, the Union Cabinet approved the strategic sale of a 30.8% stake, along with management control, in Concor, a Navratna PSU under the Railways Ministry. Currently, the government owns 54.80% of Concor.

"The government is unlikely to push forward with Concor's strategic sale," the official disclosed, citing concerns from the Railways Ministry and potential investors.

The official also mentioned that with the government holding 54.80% of the company, there is limited scope for an Offer for Sale (OFS) in Concor.

Despite Cabinet approval in 2019, no significant progress has been made on the sale, and an Expression of Interest (EOI) has not yet been invited.

Shares of Concor closed at Rs 1,043.25 each, marking a 0.35% increase over the previous close on the BSE.

(With inputs from agencies.)