Bharati Shipyard's shares fell 5% on convertible warrants issuance

MUMBAI: Bharati Shipyard's shares fell 5% on Friday, a day after it announced the issuance and allotment of 2.6 million convertible warrants to Edelweiss Finance and Investments.

The company has received 25% amount towards the issue price i.e. Rs.5.50 per warrant, totaling to Rs.1.46 crore from Edelweiss, it said.

Bharati has had massive issues with debt and finances, aggravated with what analysts call an "ill-timed" investment into Great Offshore. Edelweiss Asset Reconstruction Company has acquired 70% of the Rs 8,500 crore debt in Bharati Shipyard's books with a mandate to turn the company around.

India currently contributes to less than 1% of the global shipbuilding. The country's builders are also impacted by high import costs, cost of finance and withdrawal of subsidies by the government.