State-run Dredging Corporation of India plans to raise Rs 500 crore through tax-free bonds. The bonds are of 10-year tenure and 40 per cent of the issue is earmarked for retail investors. The issue opened on Thursday and will close on March 15.
The bonds offer a coupon rate of 6.47 per cent for qualified institutional investors, domestic companies and high net worth individuals. For retail investors, the coupon rate is 7.47 per cent. “According to Bombay Stock Exchange figures, the issue has received applications worth Rs 58,55,000,” said K Aswini Sreekanth, company secretary, Dredging Corporation of India.
Funds raised through this issue will be utilised for augmenting the firm’s long-term resources and financing the capital expenditure plan.
Dredging Corporation provides integrated dredging services to India’s major ports, non-major ports, shipyards and Indian Navy.
The company has been declared a mini ratna-category I public sector enterprise under the administrative control of the shipping ministry.
The bonds offer a coupon rate of 6.47 per cent for qualified institutional investors, domestic companies and high net worth individuals. For retail investors, the coupon rate is 7.47 per cent. “According to Bombay Stock Exchange figures, the issue has received applications worth Rs 58,55,000,” said K Aswini Sreekanth, company secretary, Dredging Corporation of India.
Funds raised through this issue will be utilised for augmenting the firm’s long-term resources and financing the capital expenditure plan.
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The bonds have been rated ‘BWR AA+ (SO) (outlook stable)’ by Brickwork, CARE AA by Care Ratings. SBI Capital Markets and AK Capital services are the lead managers to the issue.
Dredging Corporation provides integrated dredging services to India’s major ports, non-major ports, shipyards and Indian Navy.
The company has been declared a mini ratna-category I public sector enterprise under the administrative control of the shipping ministry.