Dredging Corp. offer for sale subscribed 2.65 times
The retail portion of the offer was subscribed 11.6 times, while the non-retail portion was subscribed by 1.65 times
Mumbai: The government’s offer to sell 5% of its stake in Dredging Corp. of India Ltd was subscribed 2.65 times on Friday, according to BSE data.
On Thursday, the government had announced a floor price of Rs.382 per share for the offer. It was looking to sell as many as 1.4 million shares through the offer. It holds 78.56% stake in the firm.
The share sale will fetch it Rs.53.4 crore based on the floor price.
The retail portion of the offer was subscribed 11.6 times, while the non-retail portion was subscribed by 1.65 times.
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 is 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 Rs.1,600 crore last month, REC raised Rs.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 Rs.9,300 crore.
The government is also looking to appoint bankers for divesting its stake in Coal India Ltd, which could fetch up to Rs.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 Rs.41,000 crore this year. Also, additional resource mobilization of Rs.28,500 crore has been estimated from strategic divestments to meet revenue shortfall.
In 2014-15, the government had set a target of Rs.63,425 crore from stake sales, of which it collected only Rs.31,350 crore, including Rs.5,000 crore from the sale of special drawing rights to the Reserve Bank of India.
Shares of Dredging Corp. fell 1.63% to Rs.381 on BSE, while the benchmark Sensex shed 0.88% to close at 27,366.07 points.
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