2013-03-09 16:11:25 - • Issue Opens on : March 07, 2013
• Issue Closes on : March 15, 2013
• Face Value of Bonds : Rs. 1,000/- each
• Credit Rating : “BWR AA+ (SO) (Outlook: Stable)” by Brickwork; “CARE AA (Double A)” by CARE
• Lead Managers to the Issue : SBI Capital Markets Limited, A. K. Capital Services Limited,
Hyderabad, March 9, 2013: Dredging Corporation of India Company” or “DCIL” or Issuer, provides integrated dredging services to India’s Major Ports, Non-Major Ports, Shipyards and Indian Navy and has been declared a Mini Ratna-Category I public sector enterprise under the administrative control of the Ministry of Shipping MoS, will open its public issue of tax-free bonds of face value of Rs. 1,000 each in the nature of secured, redeemable, non-convertible debentures having tax benefits under Section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended, (the “Bonds, aggregating upto Rs. 500 Crores (the “Issue in the Fiscal Year 2013.
The Issue opens on March 07, 2013 and closes on March 15, 2013.
SBI Capital Markets Limited and A. K. Capital Services
Limited are the Lead Managers to the Issue.
The bonds have been rated “BWR AA+ (SO) (Outlook: Stable by Brickwork; “CARE AA (Double A by CARE. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.
The Bonds will be open for subscription for four categories of investors viz. Category I - Qualified Institutional Investors (QIBs), Category II – Domestic Corporates, Category III- High Net worth Individuals (HNIs) and Category IV - Retail Individual Investors (RIIs)
The tenure of the bonds shall be 10 years and 40% of the Issue shall be earmarked for Retail Individual Investors. The Bonds offer a coupon rate of 6.97% p.a. for Allottees under Category I, II and III Portions and 7.47% p.a. for original Allottees under Category IV Portion.
In case the Bonds held by the original Allottees under Category IV Portion are sold/transferred (except in case of transfer of Bonds to legal heirs in the event of death of the original Allottee), the coupon rate shall stand revised to the coupon rate applicable for Allottees falling under Category I, II and III Portions
The funds raised through this Issue will be utilized for augmenting the long-term resources of the Company and for financing the capital expenditure plan of the Company for carrying out its business activities.
DCI is a premier dredging company in India, as measured by dredging capacity in terms of Hopper
Capacity/ Quantity dredged, established in 1976 as a Public Sector Undertaking PSU and declared as a Mini Ratna-Category I public sector enterprise under the administrative control of the Ministry of Shipping. The Indian dredging market consists primarily of maintenance dredging and capital dredging in addition to a limited amount of inland dredging, beach nourishment and reclamation dredging, where DCI is a very prominent player on account of their expertise in this highly technical and skilled sphere of business. DCI has a leading presence in the Indian maintenance dredging market and it also carries out limited capital dredging. DCI owns and operates 15 dredgers. In fiscal 2012, approximately 55% of its income from operations was earned from their maintenance dredging contract with Kolkata Port (Haldia). Some key customers for Fiscal 2012 include Ennore Port, Cochin Port, Cochin Navy, Mormugao Port, Visakhapatnam Port, New Mangalore Port, Karwar and Paradip Port. DCI’s operating revenue for the fiscal year ended March 31, 2012 was Rs. 491.65 crores.
For further details please contact:
Geeta Fadnavis: Concept PR: 9849256292
Note: Capitalized terms not defined herein shall have the same meaning as assigned to such terms in the Prospectus dated March 5, 2013
Disclaimer: Dredging Corporation of India Limited Company” or “DCIL ” or “Issuer is proposing a public issue of tax- free bonds of face value of Rs.1,000 each in the nature of secured, redeemable, non-convertible debentures, having tax benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended, (the “Bonds aggregating upto Rs. 500 Crores (the “Issue and the Company has filed the Prospectus dated March 5, 2013 with the designated stock exchange i.e. the BSE, the SEBI and the Registrar of Companies, National Capital Territory of Delhi and Haryana. The Prospectus is available on the websites of the BSE at www.bseindia.com, the SEBI at www.sebi.gov.in, the Company at www.dredge-india.com and the websites of the Lead Managers at www.sbicaps.com and www.akcapindia.com. Investors are advised to take any decision to invest in the Issue pursuant to their examination of the Issuer and on the basis of the disclosures made in the Prospectus. For details in connection with risks involved in investment in the Issue, please see section the titled “Risk Factors” on page 11 of the Prospectus.