Dredging Corporation hits 52-week high
The stock price of Dredging Corporation surged 16.45 per cent on bourses in early trade, and is trading at Rs 487.9 on an intraday basis, owing to the news that the GoI may sell 51 per cent stake in the company. The selling proposal has been prepared, and has been floated among key ministries for consideration.
Dredging Corporation is among the government's mini ratna public sector enterprises.There is enough competition in shipping sector and therefore the role of a public-sector firm is limited. There is anticipation that the company’s strategic stake sale should come in the middle of FY18.
At the end of December 2016, Dredging Corporation’s shareholding pattern indicates that the government holds 73.47 per cent;12.76 per cent towards financial institutions; 13.35 per cent towards others.
Post the divestment of government's stake, it will have 22.47 per cent stake in Dredging Corporation. Government’s Dredging Corporation stake sale would be worth Rs 701 crore as per current market price.
For the next fiscal, FY18, the government has set a disinvestment target of Rs 72500 crore. Out of the total disinvestment target, Rs 46500 crore is expected to come from regular stake sale; Rs 15000 crore through strategic stake sale; and Rs 11000 from listing of various insurance companies.