Concor rises 12% as Cabinet approves rail land lease policy
Agencies
Synopsis
The cabinet has approved the Rail Land Lease Policy for a period of 35 years, ET NOW report said, adding that the lease fee has also been reduced to 1.5 per cent of the value of the land. The current land lease fee (LLF) was 6 per cent.
By ETMarkets.com
New Delhi: Shares of Contain Corporation of India (Concor) zoomed 12 per cent in Wednesday's session after an ET NOW report said the government has approved changes to land license policy.
This approval from the government is considered a major breakthrough toward privatisation or divestment of the state-run transportation company.
Following the development, shares of Concor rallied as much as 12 per cent to Rs 747.65, before trading at Rs 746.50 at 1.50 pm. However, the scrip settled at Rs 669.20 on Tuesday.
This reduction is likely to increase the EPS of Concor by 10-15 per cent.
According to ET NOW report, Indian railways has a landbank of about 11 lakh acres and this approval is likely to push infra projects on the vacant lands in times to come.
Incorporated in March 1988, Container Corporation of India is under the ownership of Indian Railways. The Navratna company commenced operations in November 1989, taking over an existing network of seven inland container depots from Indian Railways.
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The cabinet has approved the Rail Land Lease Policy for a period of 35 years, ET NOW report said, adding that the lease fee has also been reduced to 1.5 per cent of the value of the land. The current land lease fee (LLF) was 6 per cent.This approval from the government is considered a major breakthrough toward privatisation or divestment of the state-run transportation company.
Following the development, shares of Concor rallied as much as 12 per cent to Rs 747.65, before trading at Rs 746.50 at 1.50 pm. However, the scrip settled at Rs 669.20 on Tuesday.
This reduction is likely to increase the EPS of Concor by 10-15 per cent.
According to ET NOW report, Indian railways has a landbank of about 11 lakh acres and this approval is likely to push infra projects on the vacant lands in times to come.
Incorporated in March 1988, Container Corporation of India is under the ownership of Indian Railways. The Navratna company commenced operations in November 1989, taking over an existing network of seven inland container depots from Indian Railways.
