ABG Shipyard shares rally 14% post block deal

MUMBAI: Shares of ABG Shipyard continued to surge for the second straight session even as ICICI Prudential Life Insurance sold 5.82 lakh shares for Rs 15.79 crore, through open market transactions.

At 11:05 a.m.; the stock was at Rs 336.50, up over 12 per cent, on the BSE. It touched a high of Rs 344 and a low of Rs 317 in trade today.

As per the bulk deal information with the bourses, ICICI Prudential offloaded 2.91 lakh shares each of ABG Shipyard on BSE and the National Stock Exchange (NSE).

ABG Shipyard shares were sold at an average price of Rs 271 each.

The stock rallied yesterday in line with other shipping companies following a sharp rise in the Baltic dry index. The rise is good news for shipping companies as it shows increased demand for cargo carriers.

The index was at 2,113, down 0.66 per cent, after surging to 21-month high to 2,127 points in trade yesterday.

According to reports, the surge in he Baltic Dry Index has been mainly on account of rise in rates for transportation of iron ore-carrying Capesizes due to imports from China. Higher rates are expected to improve Indian shipping companies’ revenues, margins and cash flows.