Posted on June 20, 2017
Shares of Dredging Corp syrged over 4% to Rs717 on NSE on reports that government is planning strategic sale through auction, positive read-thru
As per media reports, the government is planning an outright sale of Dredging Corporation of India ( DCIL) through auction, which could fetch about Rs1,400 crore to the exchequer.
The government currently holds 73.47% stake in Dredging Corporation of India. At the current market prices, sale of this stake would fetch about Rs1,400 crore to the exchequer.
The government is also mulling a two-stage auction process for the PSU, which made a net profit of Rs7.40 crore in 2016-17 fiscal. The two stage will entail shortlisting of eligible bidders and competitive financial bidding.
Also the CCEA is likely to consider an improved voluntary retirement scheme (VRS) along with the process of sale of the profit making PSU. Since dredging is not a strategic sector, the government is considering to exit the miniratna PSU by selling it to private players.
Source: Sharekhan
