Shares of ABG Shipyard today surged over 8 per cent after the company said it's in talks with Privinvest Holding, a major player in the global naval, commercial vessel and super yacht industry, for a strategic stake sale.
The stock jumped 8.16 per cent to end at Rs 180.90 on BSE. During the day, it gained 11.62 per cent to Rs 186.70.
On NSE, ABG Shipyard soared 8 per cent to settle at Rs 180.85.
On the volume front, 8.97 lakh shares of the company changed hands on BSE and over 35 lakh on NSE during the day.
"We have received a firm expression of interest from Privinvest... We are in discussion with them for a strategic stake sale," the country's largest private sector ship-building 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.
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.
Meanwhile, the BSE Sensex ended with a gain of 54.32 points at 26,425.30 today.
