Shares of Pipavav Shipyard rose nine per cent on Tuesday on reports that a foreign shipyard may buy an equity stake in the Gujarat-based yard.
A news agency reports said the private sector shipyard is in talks with an intentional yard to sell 26 per cent stake.
Unconfirmed reports
The unconfirmed reports also named a South Korean shipyard as the potential acquirer.
The company share was up by Rs 7.35 to end the day at Rs 89.10.
The yard, which went to public last year, is yet to build its first ship.
The Pipavav Shipyard Chairman, Mr Nikhil Gandhi, told Business Line said that a foreign party has shown interest in picking up a stake in the company.
“But, we (promoters) do not want to dilute our shares.”
So it is for the foreign party to make an open offer, he said.
Orders
Mr Ghandi said the yard has 21 ships on order and the construction of the first vessel -a bulk carrier - will be completed next month.
The yard has recently announced that it has received orders for building warships for Indian Navy.
“We would be focusing on Defence orders and we have got all clearances” he said.
With freight market remaining weak, shipyards across the globe have been getting fewer orders.
Shipowners have been selling even ships on order.
Last week, Great Eastern Shipping sold three very large crude carriers which are due for delivery next year, as the market for VLCC remain weak.