Mumbai: The share prices of Bharati Shipyard Ltd and ABG Shipyard Ltd zoomed on Monday as investors rushed to buy stocks speculating that the government may soon release pending subsidies to shipyards and ABG Shipyard selling its stake in India’s largest oil field services provider Great Offshore Ltd to Bharati Shipyard.
The shares of Bharati Shipyard, which now holds 43.17% in Great Offshore, rose 20% on the Bombay Stock Exchange (BSE) to close at Rs296.40 a piece. Rival company ABG Shipyard, which holds 15.2% stake in Great Offshore, was up 19.66% to close at Rs260.25.
Great Offshore stock was up 2.19% to close at Rs483.30. “Both the shares went up on baseless rumours and speculations. Generally, the market sentiment is upbeat and the mid-cap stocks can rise on any rumour,” said Arun Kejriwal, director of Kejriwal Research and Investment Services, a stock advisory firm. Dhananjay Datar, ABG’s chief financial officer, said there is no such deal happened and his firm has not yet received any pending subsidy from the government though it is strongly pursuing for it. Bharati and ABG have had a bitter fight to takeover Great Offshore, making open offers to investors. Incidentally, all shipping stocks rose on BSE on Monday.