Dredging Corp rallies 33.26% in two sessions

Dredging Corporation of India surged 11.05% to Rs 744 at 11:24 IST on BSE, extending Wednesday's sharp rally triggered by speculation of Cabinet's approval for divesting the government's stake in the company.

Meanwhile, the S&P BSE Sensex was up 42.91 points or 0.13% at 33,643.18.

On the BSE, 4.85 lakh shares were traded on the counter so far as against average daily volumes of 59,000 shares in the past two weeks. The stock had hit a high of Rs 787.90 and a low of Rs 694 so far during the day.

Shares of Dredging Corporation of India (DCIL) have rallied 33.26% in two trading sessions from its close of Rs 558.30 on 31 October 2017, after media news suggested that the cabinet has approved divesting entire stake in the company. The stock surged by the maximum permissible level of 20% to settle at Rs 669.95 yesterday, 1 November 2017 on media news.

Government of India holds 73.47% stake in DCIL as per the shareholding pattern as on 30 September 2017.

According to reports, the entire stake sale in DCIL could be a part of government's divestment programme for the financial year and also could help the government meet its fiscal deficit target of 3.2% of GDP for the year 2017-18. The government targets to raise Rs 72500 crore through disinvestment during the current financial year.

In a clarification issued to the stock exchanges regarding the aforesaid media report, DCIL said that there is no information/announcement (including pending announcement) with regard to the stated news item. As such, the company is unaware of the aforesaid news item and its source, it added.

Dredging Corporation of India's net profit fell 0.75% to Rs 3.97 crore on 8.85% growth in total income to Rs 158.28 crore in Q1 June 2017 over Q1 June 2016.

State-run Dredging Corporation of India provides dredging services to the major ports of the country.

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