Dolphin makes a 'Deep' splash comeback
After going bankrupt, Dolphin Offshore is jumping back to the sky like a breaching dolphin as it returns to the domestic offshore services market under new management.
On December 7 (2023), Dolphin's new board meets to make some important decisions, including a proposal to split its equity shares. "Dolphin's revival plan is progressing without a hiccup and will start generating income soon," says a source.
Earlier this year (2023), Ahmedabad-based Deep Industries completed the acquisition of BSE-listed Dolphin. "After the takeover, we have now completed the integration process between Dolphin and Deep," adds our source.
One of the most important developments is that the BSE announced on August 17 (2023) that it was revoking the suspension of trading of Dolphin's equity shares from August 21 (2023) following the approval of the resolution plan by the National Company Law Tribunal (NCLT) on September 29 (2022). Trading in Dolphin shares has resumed in the 'T' group.
"T shares are actively traded at stock exchanges like other shares with certain restrictions," we hear. "They have a 5% circuit breaker: their price cannot move beyond 5% either way."
On October 28 (2023), the company completed a Qualified Institutional Placement (QIP) of Rs38.5cr ($4.7m) by allotting 842,000 shares at an issue price of Rs458 ($5.49). "A QIP is a way for listed companies to raise capital without submitting legal paperwork to market regulators," we hear.
"SEBI created the rule to avoid companies growing dependent on foreign capital." Dolphin will use QIP money to refurbish Mauritius-flagged barge Vikrant Dolphin, presently in Mexico.
Vikrant is an 'accommodation barge' 90 metres by 30 metres that can transport equipment and crew to offshore installations. "Vikrant Dolphin is under complete refurbishment at the Tampico port in Mexico," we hear.
"After the refurbishment, the barge will go on a long-term contract." But first, Vikrant's ownership will pass from Dolphin's Mauritius subsidiary to the Dubai subsidiary or an entity in Gandhinagar's GIFT City business district.
Companies registered in GIFT City are considered non-residents under the Foreign Exchange Management Act, 1999 (FEMA) and receive a ten-year tax holiday. "We want to change the barge's jurisdiction because there is no double tax avoidance treaty between Mauritius and Mexico," our source explains.