Dredging Corporation up over 15% on reports of government stale sale plan

The stock surged 16% to Rs 519, also its 52-week high on the BSE in early morning trade.

Dredging Corporation of India surged 16% to Rs 519, also its 52-week high on the BSE in early morning trade after a media report suggests that the government is looking to sell a majority stake in state-owned shipping company.

“The government is looking to sell a 51% stake in staterun Dredging Corporation of India. A cabinet note has been prepared on this proposal and is being circulated among key ministries for comment,” the Economic Times report suggests quoting two senior government officials.

Dredging Corporation is among the government's mini ratna public sector enterprises, in which it holds 73.47% stake at the end of December 2016 quarter.

The BSE said, the exchange has sought clarification from Dredging Corporation of India Ltd on March 06, 2017, with reference to news appeared in Economic Times dated March 06, 2017: "Govt looking to sell 51% stake in Dredging Corp".

The reply is awaited.

The stock erased its early gain and was trading 9% higher at Rs 485 on BSE at 10:44 am. The trading volumes on the counter jumped more than 10-fold with a combined 1.31 million equity shares changing hands on BSE and NSE so far.