ABG Shipyard seeks to raise upto Rs 1000 through QIP

MUMBAI: Cash-strapped ABG Shipyard will seek shareholder approval to raise up to Rs 1,000 crore through a Qualified Institutional Placement to institutional investors, it said a regulatory filing on Tuesday.

A QIP is a capital raising tool wherein a listed company can issue equity shares, fully and partly convertible debentures, or any other securities other than warrants which are convertible to equity shares.

The largest private sector shipbuilder is undergoing corporate debt restructuring. The shipbuilding industry is hanging on the lenders’ lifeline to get their idle shipyards working, which came to a standstill after several shipping companies pulled back orders and defaulted on payments during global recession.

ABG Shipyard is holding its annual general meeting on September 30.