Dredging Corp up on ONGC issue success

DALAL STREET SPIKES

Dredging Corporation gained 19.91 per cent on Friday as the stock price of public sector firms looked up owing to the good response to the ONGC issue.

The stock touched an intra-day high of Rs 589.10 before settling at Rs 588.70, with a volume of 34,661 shares on the BSE.

Sources said aggressive buying was witnessed at the counter after the government's offer for sale received a good response with the issue getting oversubscribed more than seven times the issue size of 56 lakh shares.

Analysts said the sale offer is expected to improve the liquidity at the counter with the government holding in the company coming down to about 78 per cent from the earlier 98.6 per cent.

The government is offering 56 lakh shares for which the issue was oversubscribed over seven times with bids received for 4.16 crore shares, according to data from BSE.

The price band for the public issue was set at Rs 385-400 with maximum bids received at the upper band of Rs 400, according to merchant banking sources.