ABG Shipyard Jumps 20% on Stake Sale Buzz

Shares of ABG Shipyard jumped 20 per cent to hit maximum intraday limit of Rs 242.15 on Wednesday after a news report suggested that the Mahindra group is in talks to acquire a large stake in the ship maker.

The Mahindra group has reportedly initiated talks with the company to acquire large strategic stake in the naval ship maker.

Ship building companies have become acquisition target of many large corporate houses as the government plans to spend billions of dollars in next two decades to modernise defence forces.

The report also suggested that Pune-based Bharat Forge is also in the race to acquire a stake in ABG Shipyard.

Shares in ABG Shipyard closed 14.8 per cent higher at Rs 231.75 apiece, outperforming Nifty, which ended flat.