Bharati Shipyard on upper circuit

Bharati Shipyard breached the 5% upper circuit today at Rs.41.70, reacting positively to the clarification issued by the company yesterday evening after market closure.

The company has stated that the news of it selling its wind power business for Rs.55 crore as reported in the media was indeed true.

Issuing the clarification, the company said, "As you are aware, the Company is under CDR mechanism from 2012. As per the CDR norms, State Bank of India, the lead bank, at the instruction of CDR Banks, has decided to sell the Non-core Asset of Bharati Shipyard Limited, which has been charged to lenders and was in their possession, in order to reduce the liability of the Company. To comply with the CDR requirements, State Bank of India and other lender banks have formed an Asset Sale Committee and bids were invited and the successful bidder being M/s. Ghatge Patil Industries Limited has purchased the Wind Mill. Accordingly, the banks have sold the Wind Mill and the money has come to TRA account in State Bank of India."