Mumbai-based ABG Shipyard Ltd—the country’s biggest private shipbuilder—is trying to raise $ 200 million by means of a share sale to part-finance the setting up of a third shipyard and to expand its facility in Dahej.
Negotiations in this regard are going on, it is understood, Exim News Service reported.
Mr Rishi Agarwal, Managing Director, ABG, explained that this was part of the company’s growth plans.
Shipbuilders, including ABG and Bharati Shipyard Ltd, are increasing capacity encouraged by the brisk demand for new vessels, that has been largely triggered by the rising oil and commodity prices.
Internationally, shipbuilders, including ABG, have a backlog of orders right up to 2011.
ABG’s proposed third shipyard has been planned with a view to constructing vessels measuring 350 m in length, as compared to 250 m at its existing facility in Gujarat, an official from the company elaborated.