Indian Govt Sells Stake in Dredging Corporation
The Union government of India (GoI) has concluded the strategic sale of Dredging Corporation of India (DCIL) to a consortium of four ports Vishakapatnam Port Trust, Paradeep Port Trust, Jawaharlal Nehru Port Trust & Deendayal Port Trust.
The share purchase agreement was executed between GOI and the four ports on March 08. The government held 73.47 per cent equity stake in the company.
Of 73.47 per cent, the Vishakapatnam Port Trust bought 19.47 per cent, Paradeep Port Trust 18 per cent, Jawaharlal Nehru Port Trust 18 per cent and Deendayal Port Trust 18 per cent.
Further, the Securities and Exchange Board of India granted exemption to the consortium of ports from making an open offer, in line with the requirements of Regulations 3 and 4 of the Takeover Regulations.
The government had said the stake sale in Dredging Corp will facilitate linkage of dredging activities with ports and diversification of ports into third-party dredging.
DCIL was incorporated on 29th March, 1976 as wholly owned Government of India Undertaking with the primary objective of catering to the dredging requirements of Indian ports.
DCIL was initially incorporated as a 100% Government owned Company. The GOI disinvested 1.44%, 20%, 5% and subsequently 0.09% (employee offer) of its share holding in the Company in the years 1992, 2004, 2015 and 2016 respectively.
After these disinvestments, the shareholding of the Government of India is 73.47%. The Company undertakes Capital Dredging, Maintenance Dredging, Beach Nourishment, Land Reclamation, Shallow water Dredging, Project Management Consultancy and Marine Construction for Major Ports, Indian Navy etc.