Dredging Corporation stock closes 20% higher after Cabinet clears stake sale

The Dredging Corporation stock on Wednesday hit the upper circuit of 20 per cent after the government today approved the sale of its entire 73.47 per cent stake in the firm which could fetch about Rs 1,400 crore to the exchequer.

The stock closed 20 percent or 111.65 points higher at 669 level on the BSE.

Prime Minister Narendra Modi  led Cabinet approved the DCI disinvestment, official sources said after the Cabinet meeting.

The company is under the administrative control of the shipping ministry. It is involved in maintenance dredging, capital dredging, beach nourishment, land reclamation, shallow water dredging, project management consultancy and marine construction.

A core group of secretaries on disinvestment, headed by the Cabinet Secretary, had already approved the sale of DCI.

The government think tank Niti Aayog too had favoured disinvestment. The government currently holds 73.47 per cent stake in DCI.