Office Address
123/A, Miranda City Likaoli Prikano, Dope
Phone Number
+0989 7876 9865 9
+(090) 8765 86543 85
Email Address
info@example.com
example.mail@hum.com
123/A, Miranda City Likaoli Prikano, Dope
+0989 7876 9865 9
+(090) 8765 86543 85
info@example.com
example.mail@hum.com
“The rights issue plan was discussed in the board
multiple times but there is strong opposition from the promoter ports that it
is a waste of money,” a person familiar with the plan said, asking not to be named…Visakhapatnam
Port Authority is the largest shareholder among the four state-owned major port
authorities that owns DCI with 19.47 per cent stake. The other three
-Jawaharlal Nehru Port Authority, Deendayal Port Authority and Paradip Port
Authority – own 18 per cent stake each in the dredging contractor…
“. Being a
listed entity, DCI sold the shares to the four major port authorities at a
certain price, but since then the enhancement in the share price is not
commensurate with their expectations,” the person said…
“There is no
light at the end of the tunnel. The management of DCI is saying they have some
good plans to improve the fortunes of the company. When our technical officers
checked, they are not confident that we will get value for the money to be
invested during the rights issue. So, there is a strong opposition from the
technical people,” the person, whose port gave a loan of ₹100 crore to DCI a
year ago to tide over a temporary crisis, said.“The board has not taken a
decision on the rights issue,” the person added…DCI has taken a loan from a
European bank to fund the construction of a dredger at Cochin Shipyard Ltd on
which it has already paid two instalments to the shipbuilder. The moratorium on
repayment of the loan is over and DCI has started repaying the loan.From FY27 onwards, when the loan repayments
for the new dredger would start pinching more, DCI would not be able to stand
on its feet…“The fortunes of the company have been such that, in the last
three years, due to two episodes over the removal of managing directors and
chief executive officers, the credibility of DCI has taken a huge hit,” he said…The Ministry
of Ports, Shipping and Waterways is keen on fixing the financial distress of
DCI…The revenue earnings days of the dredgers leaves much to be desired. Out of
90 days in a quarter, DCI dredgers work for hardly 52 days.Impairment of assets
is also linked to the fresh equity infusion.
“DCI is a company in which the government has invested
so much in the last 35 years and anybody who is associated with the government
would not like this company to fail. We want this company to prosper, and given
its virtual monopoly profile, there is nobody who can do work like DCI,” the
first source added.
