Government garners ₹57,523.32 cr from sell-offs post Dredging Corp stake sale1 min read . Updated: 09 Mar 2019, 10:57 PM IST
- The government sold 73.44% holding in the company at ₹510 a share
- The share sale will fetch the government ₹1,050 crore
NEW DELHI : The government's FY19 disinvestment proceeds have reached ₹57,523.32 crore following its decision to sell its entire stake in the Dredging Corporation (DCI) to a consortium of four state-owned ports for ₹1,050 crore.
The government sold 73.44% holding in the company at ₹510 a share -- a premium of 17 per cent over Friday's close -- to Visakhapatnam Port Trust, Paradeep Port Trust, Jawaharlal Nehru Port Trust and Deendayal Port Trust.
The share sale will fetch the government ₹1,050 crore, said RBSA Advisors, the adviser for the deal.
The government has a stiff target of ₹80,000 crore from sell-offs for this year.
The market regulator Securities and Exchange Board of India had exempted the deal from a mandatory open offer, said the adviser.
The decision came handy for the government to sell its entire stake in DCI. The move has also helped avert a political backlash in the forthcoming polls if the firm would have been privatised.