The Hindu : Price band for DCI shares announced

Online edition of India's National Newspaper
Wednesday, Feb 25, 2004

Business

Business

Price band for DCI shares announced

By Our Special Correspondent

NEW DELHI, FEB. 24. The Union Government today fixed a price band ranging between Rs. 385 and Rs. 400 per share for sale of shares in the state-owned Dredging Corporation of India with a 5 per cent discount to retail investors who subscribe the issue.

Announcing the price band for the issue opening on February 26, the Disinvestment Secretary, Dhirender Singh, said the Government would offload 20 per cent equity in the company through a 100 per book building issue where it now holds close to 98 per cent stake.

DCI is offering for sale 56 lakh shares of Rs. 10 each and the offer price would be determined through the book building process. Post offer, the Government's stake would come down to 78 per cent. However, the final offer price for the issue would be decided after closure of bids on March 4.

Incidentally, DCI is the fourth company where the Government has invited bids for sale of its equity after CMC, IBP and IPCL.

Of the 5.60 million equity shares being offered, 50 per cent have been reserved for qualified institutional buyers. Further, not less than 25 per cent of the offer will be available for allocation on a proportionate basis to non- institutional bidders and not less than 25 per cent of the offer would be reserved for retail individual bidders.

However there is no reservation for employees in the offer although the company had originally proposed that at least 5 per cent of the offer should be reserved for employees.

The decision to offer retail investors a discount follows the practice adopted by Government in three previous issues.

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