ABG Shipyard sailing smooth waters

ABG Shipyard is sailing high today. The stock is up in the green, over 14% high at Rs.52 levels. Volumes are huge , up from 69,000 shares over two-week average to almost 2.5 lakh shares today alone.

The reason for this spike up? There was a news item that the company is talking to a handful of domestic and international investors to see almost 51% of its stake to pare its debt and bring about management changes in the top rung.

The company, which in the midst of a CDR and is in the process of recasting Rs,11,000 crore worth of loans. SBI which is leading the creditors has offered the company a two-year moratorium on payment of interest, bring down the cost of its debt and increase the repayment time.

The company issued a clarification today on this 51% stake news, agreeing that it was in talks to sell stake but nothing has yet reached a stage of finalization.