ABG Shipyard rose 3.42% to Rs 65.05 at 10:16 IST on BSE after the Union Cabinet approved policy measures to promote shipbuilding industry.
Meanwhile, the BSE Sensex was up 78.44 points, or 0.31%, to 25,114.49.
On BSE, so far 1.05 lakh shares were traded in the counter, compared with an average volume of 1.71 lakh shares in the past two weeks.
The stock hit a high of Rs 67 and a low of Rs 64.35 so far during the day. The stock hit a 52-week high of Rs 260 on 10 March 2015. The stock hit a 52-week low of Rs 62.05 on 9 December 2015.
The Union Cabinet yesterday, 9 December 2015, approved policy measures to promote the shipbuilding industry. The government will provide financial assistance to shipyards at 20% of the contract price or the fair price of the ship whichever is lower. The rate of the government grant will reduce at 3% every three years. This policy will be in force for ten years. The shipyard will receive the financial grant from the government after the delivery of the ship to the buyer. The financial grant will be available for all types of ships. Additionally, the policy includes grant of a 'Right of First Refusal' for Indian shipyards for government purchases.
ABG Shipyard reported net loss of Rs 478.18 crore in Q2 September 2015, higher than net loss of Rs 172.80 crore in Q2 September 2014. Net sales declined 86.8% to Rs 9.34 crore in Q2 September 2015 over Q2 September 2014.
ABG Shipyard is the largest private sector shipbuilding yard in India.
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