ABG Shipyard jumps 14 % on stake sale buzz; m-cap soars by Rs 126 crore

MUMBAI: Shares of ABG Shipyard today settled with a gain of over 14 per cent following media reports that the Mahindra group is looking to acquire a controlling stake in the company.

The company opened on a bullish note at Rs 227.50, then jumped 19.25 per cent to touch an intra-day high of Rs 241.25. At the end of trade, the scrip was quoted at Rs 231.60, up 14.48 per cent over its previous closing price.

The market capitalisation of ABG Shipyard surged by Rs 126.11 crore, to Rs 1,209.84 crore.

According to media reports, the Mahindra group has initiated talks with ABG Shipyard to acquire a large strategic stake in the company.

The company however in a filing to the BSE today said that "no such negotiations were taking place".

"Company is not aware of any information that has to be announced to the Exchanges which could explain the aforesaid movement in the trading and that which is required to be disclosed to the stock exchanges as per Clause 36 of the Listing Agreement," the filing added.