Dredging Corp buzzes on hint of government divestment

The stock of Dredging Corp was buzzing during Tuesday's trading session as news reports suggested that government mulls to invite bids to sell its stakes. The stock hit a intraday high of Rs. 586.00 per share.

The Government of India holds 73.47 per cent stake in the company as on March 2018, according to shareholding pattern listed on BSE.

The market was abuzz with news reports that government plans to sell stake in Dredging Corp, a state-owned firm. The Cabinet Committee on Economic Affairs (CCEA) had in 2017 approved strategic disinvestment of the government’s stake in DCI, along with transfer of management control.

In the Union Budget 2018, the government set a divestment target of Rs. 80,000 crore for this fiscal year, which could help in easing fiscal deficit.

As with an state-owned companies there is apprehension among the employees about job losses. Earlier, the employees of Dredging Corp have also expressed interest in bidding for the government’s stake in the company.

Dredging Corporation of India Limited (DCI) is a profit-making state-owned entity with 19 dredgers and ancillary crafts. The company is involved in capital dredging, maintenance dredging, beach maintenance, land reclamation and shallow water dredging.

On Tuesday, at 14:15 the stock of Dredging Corporation was trading at Rs. 562.55 per share, down by 1.81 per cent.