The Hindu Business Line : ABG Shipyard raises Rs 140 cr through private equity

ABG Shipyard Ltd has concluded a Rs 140-crore private equity financing agreement with Standard Chartered Private Equity and IL&FS Investment Managers.

ABG is expanding its shipbuilding facilities at a cost of Rs 450 crore to meet the surge in demand for new ships. The expansion is expected to be over by 2007.

The balance funding for the project will be partly through debt and an IPO of Rs 100 crore scheduled later in the current fiscal. After the expansion, ABG will have the capacity to simultaneously produce eight vessels with a DWT up to 1.20 lakh.

Mr Rishi Agarwal, Managing Director of ABG Shipyard, said Indian shipyards have developed strengths to compete in the global market. He said the shipyard had its capacity fully booked for the next three years.

According to Mr S. Dalal, Vice-Chairman and Managing Director of IL&FS Investment Managers, "We believe that India will play a key role in the Asian shipbuilding industry with the inherent advantage of competitive labour costs, skilled engineering and naval architectural talent."

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