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Business News/ Market / Stock-market-news/  Govt sets floor price for Dredging Corp. stake sale at Rs382 per share

Mumbai: The government on Thursday set the floor price for its stake sale in Dredging Corp. of India Ltd at 382 per share.

The offer for sale for a 5% stake in the firm opens on Friday.

The government is looking to sell as many as 1.4 million shares. It holds a 78.56% stake in the firm.

The share sale will fetch it 53.4 crore, based on the floor price of 382.

SBICAP Securities Ltd and IDBI Capital Market Services Ltd are managing the offer.

Dredging Corp. was established in 1976 to provide dredging services to the major ports of the country.

This will be the third divestment by the government in this fiscal year. Earlier, it had divested its stake in Rural Electrification Corp. Ltd (REC) and Power Finance Corp. Ltd (PFC). While the PFC sale raised 1,600 crore last month, REC raised 1,610 crore in April.

Also, earlier this month the government appointed merchant bankers for the divestment of a 10% stake in Indian Oil Corp. Ltd. This could see the government raise up to 9,300 crore.

The government is also looking to appoint bankers for divesting its stake in Coal India Ltd, which could fetch up to 23,000 crore, Mint reported on 12 August.

Bankers have also been appointed for the sale of stakes in NTPC Ltd, Bharat Electronics Ltd, Engineers India Ltd, Nalco Ltd and Hindustan Copper Ltd.

Receipts from divestment have been estimated at 41,000 crore this year. Also, additional resource mobilization of 28,500 crore has been estimated from strategic divestments to meet revenue shortfall.

In 2014-15, the government had set a target of 63,425 crore from stake sales, of which it collected only 31,350 crore, including 5,000 crore from the sale of special drawing rights to the Reserve Bank of India.

Shares of Dredging Corp. fell 4.75% to 387.30 on BSE, while the benchmark Sensex shed 1.16% to close at 27,607.82 points.

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Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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Updated: 20 Aug 2015, 06:07 PM IST
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