ABG Shipyard hits lifetime low; tanks over 80% from 52-week high

The stock tanked 18% to Rs 31.40, also its lifetime low on the BSE, after ECL Finance sold more than one million shares of the company through open market.

ABG Shipyard has tanked 18% to Rs 31.40, also its lifetime low on the BSE, after ECL Finance sold more than one million shares of the company in the open market.

On May 5, 2016, ECL Finance had sold 1.01 million equity shares representing 1.8% of total equity of ABG Shipyard at average price of Rs 39.73 via open market on the BSE and National Stock Exchange (NSE), bulk deal data showed.

Earlier, between April 6 and April 20, ECL Finance along with Arum Investment Private Limited had collectively invocated 3.05 million or 5.64% stake via open market, ABG Shipyard said in a regulatory filing.

These shares were pledged by the promoter ABG International, towards collateral for the facility availed by the promoter company/group company.

In past one-and-half month, the market price of the company more than halved from Rs 73 as compared to less than 1% decline in the S&P BSE Sensex. It tanked an over 80% from its hit a 52-week high of Rs 211 on July 24, 2015 on the BSE in intra-day trade.

Meanwhile, the Exchange has sought clarification from ABG Shipyard Ltd on May 06, 2016 with reference to the news flashed on CNBC TV 18 stating, "Promoters may have to give up control post failing to bring in investor. Lenders likely to invite public bids to acquire majority stake in CO. ABG owes Rs 11,000 crore to 22 banks consortium led by ICICI Bank"

The reply is awaited.

ABG Shipyard Limited is a shipbuilding and ship repair company.

At 10:50 am, the stock was down 11% at Rs 34.25 on the BSE on back of heavy volumes. A combined 6.98 million shares changed hands on the counter on the BSE and NSE so far.