ABG bought 119.55 million shares, representing 40.57 per cent stake, from ICICI Bank in off-market deals. Post deal, it now holds 60.26 per cent stake in Western India Shipyard Ltd (WISL), the company said in a filing to the Bombay Stock Exchange.
WISL, the largest domestic composite ship & rig repair company in the private sector, has been a loss making entity since its inception in 1996. "We have completed the acquisition in all the respects and ABG Shipyard now holds a controlling stake of about 60 per cent in the Western India Shipyard (WISL)," Chief Financial Officer of the company Dhananjay Datar told PTI. The company had a debt of Rs 250.1 crore and reported accumulated losses of about Rs 187 crore as of March 31, 2006. As part of its debt-restructuring exercise, the lenders led by ICICI Bank had struck a deal with ABG Shipyard in 2007 to acquire the company and provide financial and technical support to the WISL. "The debt of WISL has now come down to about Rs 120 crore.
Some of it is with ICICI and some with IFCI and other lenders," Datar added. The company, whose revival plan was approved by the Bombay High Court in January this year, had posted profit of about Rs 66 crore for the first time in the last quarter of 2009-10. In April-June quarter this year, it had reported a net profit of about Rs 5.8 crore. "WISL has now become an ABG Group Company. With the technical support of ABG, WISL will look forward to big and quality repair orders for both ships and rigs," Whole Time Director and CEO of Western India Shipyard Cdr S K Mutreja said. Following the announcement, the shares of Western India Shipyard zoomed 20 per cent--the maximum permissible one day gain on the Bombay Stock Exchange-- to Rs 16.76 a piece.