ABG Shipyard soars on plans to raise funds for expansion

Company proposes to raise up to Rs 1,000 crore for expansion and working capital

Shares of ABG Shipyard were up 10% at Rs 385, ahead of its annual general meeting scheduled for September 27, in which the company has proposed to raise up to Rs 1,000 crore.

The company, in its annual report for 2011-12, said that up to Rs 1,000 crore will be raised in one or more tranches through a public issue, private placements or through Qualified Institutional Placement.

The funds will be deployed for expansion, finance, working capital and general corporate purpose. The detailed terms and conditions for the offer will be determined by the Board in consultation with the advisors, lead managers/book runners, underwriters and any such other authority that need to be consulted by the company considering the prevalent market conditions and other factors, the report said.

 

Over 400,000 shares were traded on both the stock exchanges.