ABG shipyard to raise INR 1000 crore for its expansion

In a report to its shareholders, ABG shipyard has notified: “Taking into account the performance and the positive outlook of the company, the company proposes to raise long term capital by issue of further securities to cater its fund requirements for expansion of activities, finance, additional working capital and generate corporate purpose”. ABG’s expansion plan proposes to build a shipyard in Nigeria. In 2010, it purchased a controlling stake in the Goa based Western Indian Shipyard. The local shipbuilding industry has been affected by the economic slump and downturn; moreover, the withdrawal of special subsidy was another significant reason that inflicted damage on the ship building industry. There is a recent government proposal to permit the defence shipyards to team up with the private sector companies; but, the benefit that might result out of this proposal is yet to take shape. ABG shipyard is the largest private sector shipyard in the country.

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