Shares of Dredging Corporation of India Ltd, a state-run corporation, were locked at 20% upper circuit on Monday, 3 November, after the company announced signing multiple MoUs during India Maritime Week and receiving a modernisation plan from the government.

Dredging Corporation reported in an exchange filing that it signed 22 Memorandums of Understanding with 16 companies during India Maritime Week, which took place from 27 October to 31 October. The signed MoUs total Rs 17,645 crore, approximately seven times the company’s market valuation of around Rs 2,500 crore.

MoUs were inked with Visakhapatnam Port, Paradeep Port, Jawaharlal Nehru Port, Paradip Port, and other major ports, including those in Chennai, Mumbai, and Kochi, to cater to their dredging requirements for the next two to five years.

In addition to these MoUs, an investment of Rs 4,000 crore was announced for the renovation of Dredging Corporation, including the construction of 11 dredgers, upgrades, automation, and skilled workforce development.

Dredging Corporation’s management further stated that the MoUs will assist the company in meeting dredging needs, upgrading its existing fleet, and taking a variety of other initiatives.  The acquisition of a new fleet would strengthen Dredging Corp’s position to grow its market share.

Dredging Corp’s promoters include Deendayal Port, JNPT, Paradip Port Trust, and Visakhapatnam Port Trust, with a combined 73% interest.

At 12:45 pm, the shares of Dredging Corporation of India were locked 20% higher at Rs 889.35 on NSE.

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