ABG Shipyard Surges on Fund Buying

ABG Shipyard extended its rally for the third day; they surged nearly 11 per cent to an intraday high of Rs 257 on Thursday after DB International (Asia) acquired stake in the company in an open market transaction.

DB International (Asia), a Singapore based fund bought a total of 9.5 lakh shares on NSE and BSE representing around 2 per cent of the total outstanding shares in the company on Wednesday as per the details given by the exchanges.

The fund bought 6.6 lakh shares of ABG Shipyard at Rs 229.41 per share on NSE and 2.9 lakh shares at Rs 228.07 per share on BSE.

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.

As of 11.15 a.m. shares in ABG Shipyard traded 6.52 per cent higher at Rs 247.60 apiece outperforming the broader Nifty, which was 0.24 per cent.