Government of India (the "Selling Shareholder"), of Equity Shares in
Dredging Corporation of India Limited (DCI)
Registered Office: Core - 2, First Floor, 'Scope Minar', Plot No. 2A & 2B, 
Laxminagar, District Center, Delhi - 110091, India
Tel: +91-11-2244 8528, Fax: +91-11-2244 8527, Registered Office E-mail:dci_ro@vsnl.net

Head Office: 'Dredge House', Port Area, Visakhapatnam - 530 035, Andhra Pradesh, India
Tel: +91-891-2564866, Fax:+91-891-2560581, E-mail:dcl_ho@satyam.net.in,
Website:www.dredge-india.com

Offer for Sale by the Selling Shareholder of up to 5,600,000 Equity Shares of Rs. 10 each through 100% Book Building Process.  The floor of the price band was Rs. 385/- per share and cap of the price band was Rs. 400/- at a price of Rs. 400 in cash aggregating Rs. 2,240,000,000 (hereinafter referred to as the "Offer"). The Offer would constitute 20% of the paid-up capital of Dredging Corporation of India Limited. ("The Company")

The Equity Shares being offered for sale are listed on the National Stock Exchange of India LImited, The Stock Exchange, Mumbai, The Delhi Stock Exchange Association Ltd. and the Calcutta Stock Exchange Association Ltd. The Equity Shares are tradeable on these Stock Exchanges.

The Equity Shares being offered pursuant to this Offer are already listed.  As advised by Securities and Exchange Board of India, the SEBI Guidelines for public issues/offers do not apply to a listed company facilitating one of the shareholders to dispose of its holding through an offer for sale, such as this Offer.   However, the Selling Shareholder has voluntarily decided to adopt the SEBI Guidelines, particularly the guidelines for the 100% Book Building Process, save for certain deviations, Pursuant to the decision of the Selling Shareholder, a maximum of 2,800,000 equity shares of the Offer shall be available for allocation on a discretionary basis to Qualified Institutional Buyers.  Further, not less that 1,400,000 equity shares of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 1,400,000 eqity shares of the Offer shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid Bids being received at or above the Offer Price.  The Selling Shareholders has decided to transfer the Equity Shares to Retail Bidders at Rs. 360/- per Equity Shares which is at 5% discount compared to the price of Rs. 400/- per equity share for QIBs and Non-Institutional Bidders. The Selling Shareholders is solely responsible for this decision and the consequences thereof.

BASIS OF ALLOCATION

The Selling Shareholder has received 2,19,361 valid bids for 9,617,025 equity shares resulting in 17.78 times subscription.  The level of subscription should not be taken to be indicative of either the market price of the Equity Shares either on listing or the business prospects of the company.  The valid demand (considering highest value bid in case of multiple bids) from institutional, Non Institutional and Retail Bidder categories is as under:-

A) Allocation to Non Institutional Bidders:

The Basis of Allocation to the Non Institutional Bidders who have bid for at or above the Offer Price of Rs. 400 per Equity Shares, was finalised in consultation with the National Stock Exchange, Mumbai.  The total number of shares allocated in this category is 1,400,000. There were 2,498 valid applications and proportionate allotment has been made.

B) Allocation of Retail Individual Bidders:

The Basis of Allocation to the Retail Individual Bidders who have bid for at or above the Offer Price of Rs. 400 per Equity Shares, was finalised in consultation with the National Stock Exchange, Mumbai, on a proportionate basis after rounding off to the nearest, one share.  The offer price to retail individual bidders was fixed at Rs. 380/- (ie. at 5% discount to the offer price of Rs. 400/-). The total number of shares allocated in this category is 1,400,000 at a price of Rs. 380/- (after deducting the discount described above).  A sample of category-wise details and the Basis of Allocation is as under:

C) Allocation to Qualified Institutional Buyers (QIBs):

Date of Completion of despatch of refund orders           : March 19, 2004
Date of credit of shares allocated to successful bidders : March 19, 2004

Allotment details have been hosted on the Registrar's website with the following URL http://www.karvy.com . All correspondences with reference to this issue should be addressed to the Registrars to the offer quoting full name of the first/sole applicant, serial number o the bid-cum-application form, number of shares bid for, name of the syndicate member and place where the bid was submitted and payment details at the following address:

Karvy Consultants Ltd. Unit-DCI Public Offer, karvy House, 46 Avenue 4, Street No. 1, Banjara Hills, Hyderabad 500 034
Tel: +91 40 2331 2454/2332 0751/53, Fax: +91 40 2331 1968/2332 3049, Email: dciipo@karvy.com