With the transfer of the Centre’s shares to the consortium of four major ports and approval of new shareholding by market regulator Securities and Exchange Board of India (SEBI), the new Board of Directors of Dredging Corporation of India Limited (DCIL) has been reconstituted.
In an order issued on February 28, the SEBI, exercising the powers conferred under the Section 19 read with Section 11 (1) and Section 11 (2)(h) of the SEBI Act, 1992 and Regulation 11(5) of Takeover Regulations, granted exemption to the consortium of ports from making a public announcement of open offer for acquiring the shares.
The consortium has been formed by Visakhapatnam Port Trust (VPT), Paradip Port Trust, Jawahalal Nehru Port Trust and Deendayal (Kandla) Port Trust after the Cabinet Committee on Economic Affairs permitted the takeover of 73.47% equity of Government of India in the DCIL.
New members: Following the strategic sale decision approved by the Union Cabinet last year and subsequent change in the equity pattern, DCIL Chairman and Managing Director Rajesh Tripathi resigned. By virtue of holding a majority stake of 19.47% as reported in these columns, VPT Chairman M.T. Krishna Babu has been named as one of the directors. He will also become the Chairman of the DCIL.
Mr. Tripathi who has been appointed as one of the directors in the board would become the Managing Director, sources said. Other board members include Sanjay Satyapal Bhatia, Rinkesh Roy and Capt. Anoop Kumar Sharma. The board will meet soon to take stock of the situation post-takeover.
Completion of formalities for the takeover has brought jubilation among the DCIL employees. Thanking the Centre, DCIL Officers’ Association member P.K. Sethi said that everyone should double their efforts to improve the brand image of the company now and improve the profit margins.
Rs 1049-cr. gain for Centre: As part of the share purchase agreement signed on March 8, the Centre will get Rs 1,049 crore. Consequent upon the transfer of 73.47% holding, the VPT now has 19.47% of the paid-up capital and the three other ports have picked up 18% each.
According to sources, following the strategic sale, the Centre has mobilisations from the disinvestment during the current fiscal has gone up to Rs 57,523 crore as against the target of Rs 80,000 crore.
DCIL, which has been earning profits since its inception in 1976, began its journey as a 100% government-owned company. The shareholding was sold at 1.44%, 20%, 5% and 0.09% respectively in 1992, 2004, 2015 and 2016.
The decision to retain DCIL within the government sector was announced by Union Shipping Minister Nitin Gadkari when he visited Visakhapatnam in July last year after the Centre decided to sell its total stake on November 1, 2017, which was viewed as an attempt to privatise the profit-making PSU.