BNP Paribas adds a Navratna to its cap, bets Rs 392 crore on railway PSU in bulk deal

BNP Paribas on Monday bought a stake worth Rs 392 crore in rail major Container Corporation of India (CONCOR) in a bulk deal. The French multinational bank acquired 72.18 lakh shares in Navratna company through its subsidiary BNP Paribas Financial Markets for Rs 515.3 each.The purchase price was 0.8% higher than Friday’s closing price of Rs 511.20 on the NSE. The shares closed the day today at Rs 517.75, a gain of 1.3% from the last close.

CONCOR shares have underperformed the market, with prices down 18% over the past twelve months. The stock is currently trading below its 50-day and 200-day simple moving averages (SMAs) of Rs 534.6 and Rs 561.1, respectively, as per Trendlyne data. It showed high volatility with a one-year beta of 1.3.

CONCOR’s consolidated net profit in the September quarter stood at Rs 379 crore, a growth of 3.6% from Rs 365 crore in the year-ago period. Total revenue in the quarter stood at Rs 2,442 crore, up 1% compared to Rs 2,417 crore in the corresponding quarter of the last fiscal.

Incorporated in March 1988, Container Corporation commenced operations in November 1989 and took over the existing network of 7 ICDs from Indian Railways. The company claims to be the market leader with the largest network of 66 ICDs/CFSs in India (62 terminals and 4 strategic connections).

In addition to offering domestic rail transport for containers, it has also expanded into port management, air freight complexes and setting up cold chains. Also read: Karnataka Bank bulk deal: Cupid CMD Aditya Kumar Halwasiya to acquire Rs 71 cr stake in Quant MF-backed lender

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