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ABG Shipyard today said it is in talks with Privinvest Holding, a major player in global naval, commercial vessels and super yacht industry, for a strategic stake sale.
"We have received firm Expression of Interest from Privinvest... We are in discussion with them for a strategic stake sale," the country's largest private sector shipbuilding yard said in a regulatory filing to BSE.
Without disclosing any financial details, the flagship of the ABG Group said: "Privinvest owns Nobiskrug GMBH and ADM Kiel Shipyards in Germany, Hellenic Shipyards SA Greece, CMN Shipyard, France, and Logistics International SAL ADM Shipyards, UAE."
The company did not offer any clarity on the equity percentage to be sold, but Privinvest is expected to buy up to 49 per cent through fresh equity worth Rs 1,000 crore.
Queries sent to ABG Shipyard remained unanswered.
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According to reports, Privinvest is interested in picking a majority stake in ABG Shipyard to get a foothold in India and gain from its defence licence to build warships.
On its part, ABG Shipyard is reported to be battling a heavy debt load as it aims to exit corporate debt restructuring (CDR) involving Rs 7,200 crore by the end of this fiscal.
Last month, BSE had sought clarification from ABG Shipyard on reports of defaults on restructured loans.
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The company had replied: "We wish to advise you that we are working within the framework of the CDR scheme and our principal repayment of loans is yet to start."
Also, the company is scouting for investors to improve its finances and operational performance.
ABG Shipyard's net loss had widened to Rs 901 crore last fiscal as against Rs 222 crore in 2013-14.
The stock was trading at Rs 174.25 on BSE, up 4.19 per cent.
