ABG Shipyard surges 16% as Mahindra group eyes stake

MUMBAI: Shares of ABG Shipyard surged nearly 16 per cent in trade following report that the $17-billion Mahindra group is in talks to acquire a large strategic stake in the maker of naval ships and vessels.

An ABG official told TOI that the company was in discussions with investment bankers to raise equity and was looking at several options. Its chief financial officer Dhananjay Datar said the company cannot comment on rumours and will "come out with official conformation if any definite transaction takes place"

ABG, the country's largest ship builder with facilities in Gujarat and Goa, has a beaten down share price and is in the midst of a Rs 11,000-crore debt restructuring plan.

At 09:55 a.m.; the stock was at Rs 229.45, up 13.42 per cent, on the BSE. It rallied 15.96 per cent to touch intraday high of Rs 234.60.