ABG Shipyard sailing in good waters

ABG Shipyard has been showing some unusually high volumes for the past couple of days. Today too is not exception with some 3 lakh shares changing hands in morning trades. The stock is up currently 17% at Rs.236.50.

This cash strapped company has been reeling under some real stressful times for a long time now and there has been news doing the rounds that the promoters plan to sell stake to a strategic partner to raise funds. Once again the same news has cropped up today but this time around, it has got more specific with news that M&M, Bharat Forge, Adani group and some foreign players of Singapore having approached the company to buy out the majority stake.

The company is already a part of the CDR program to restructure its Rs.11,000 crore debt – touted to be the second largest CDR program. Despite that, it remains in turbulent waters and needs this stake sale to boost liquidity.

The Exchange has sought clarification from ABG Shipyard with respect to this news and the reply is awaited.