ABG Shipyard allots Rs 7.73 lakh to CDR lenders as part of debt recast package

Company to allot shares at a price of Rs 275.92 each on preferential basis

ABG Shipyard, the country's largest private shipbuilder, on Friday said its security issue commitee, part of the board, had allotted 2,803 shares to corporate debt restructuring (CDR) lenders at Rs 275.92 a share, of face value of Rs 10 each.

 

The allottment was made according to the CDR package, said the company in a BSE notification. The shares would be issued to the lenders on a preferential basis and would be locked- in for a period prescribed by rules, said the company.

ABG Shipyard has been battling a heavy debt load as it aims to exit CDR involving Rs 7,200 crore by the end of the current financial year.

 

Last month, the company said it was in talks with Privinvest Holding, a major player in global naval, commercial vessels and the super yacht industry, for a strategic stake sale.

The shipbuilding industry, globally as well as domestically, has been facing a tough business environment. Domestic private shipbuilders, who mainly focus on commercial shipbuiding, are now looking at defence as the next segment.