Pipavav Shipyard in talks to sell stake to foreign player

Pipavav Shipyard in talks to sell stake to foreign player

Mumbai: Pipavav Shipyard Ltd is in advanced talks to sell stake to an international shipyard and a deal is likely within the next two weeks, a source with direct knowledge of the matter said on Tuesday.

“Pipavav is talking to a large international player. It would take about one or two weeks for the deal," the source said.

India’s largest shipyard by market capitalisation hopes to sell the shares at a 20% premium to its current market price, the source, who declined to be identified ahead of a public announcement said.

At the current market price, this would come to more than 100 a share.

Earlier on Tuesday, Pipavav shares rose nearly 10% after a television channel reported the firm was in talks to sell a stake. At 2:30 p.m. the shares were up 8.64% at 88.65 in the Bombay Stock Exchange.

Pipavav Shipyard’s promoters currently hold about 45% in the firm, data from the stock exchange showed.

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