Dredging Corp share price zooms 10% after Modi government approves sale; key things to know

By: | Published: November 9, 2018 9:32 AM

Shares of state-run Dredging Corporation of India surged 10% in the morning trade on Friday, after the Narendra Modi-led government approved the sale of its entire stake to a consortium of four ports.

The proposed sale of 6.5 crore enemy shares in 996 companies could fetch the government close to Rs 3,000 crore.

Shares of state-run Dredging Corporation of India surged in the morning trade on Friday, after the Narendra Modi-led government approved the sale of its entire stake to a consortium of four ports. Dredging Corp shares zoomed more than 9.6% in the morning trade on Friday to hit the day’s high at Rs 383. The Cabinet Committee on Economic Affairs (CCEA) yesterday, approved divestment of its entire 73.44% stake in Dredging Corporation of India to a consortium of four ports. Notably, while the government’s divestment target for the fiscal year was Rs 80,000 crore, so far it has already garnered over Rs 15,000 crore from PSU stake sales.

Notably, the consortium of state-owned ports are Vishakhapatnam Port Trust, Paradeep Port Trust, Jawahar Lal Nehru Port Trust and Kandla Port Trust. The strategic disinvestment of DCIL shall be undertaken after conducting due diligence exercise by both the entities with the help of advisers, appointed for the transaction.

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Speaking to the press yesterday, Law Minister Ravi Shankar Prasad said that the cabinet has given its in-principle approval for the operation and management of six airports using the Public-Private Partnership (PPP) model, among other measures. The six airports to be leased are Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru.

Apart from the stake sale, the cabinet has also finalised the sale of 65,075,877 enemy property shares worth Rs 3,000 crore. These include movable and immovable shares of 996 companies. According to a government statement release, “the process for selling these shares is to be approved by the Alternative Mechanism (AM) under the chairmanship of finance minister and comprising minister of road transport and highway and home minister”. The proposed sale of 6.5 crore enemy shares in 996 companies could fetch the government close to Rs 3,000 crore at current valuation, according to a report in The Financial Express.

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