Company says confident of raising funds; to raise Rs 688 crore by February-end.
The opposition party questioned why the government took five years after the liquidation proceedings of ABG Shipyard to lodge an FIR in connection with the alleged duping of 28 banks.
The action comes days after the CBI registered an FIR in the country's biggest alleged bank loan fraud case till date.
Replying to a query in Rajya Sabha, Finance Minister Nirmala Sitharaman said there was no delay by the Centre in taking action after identification of fraud by the State Bank of India following the forensic report from Ernst & Young.
As many as 26 premises are being searched in these cities by the federal agency under the criminal sections of the Prevention of Money Laundering Act, they said.
Country' biggest private sector shipbuilder ABG Shipyard today said it will acquire Vipul Shipyard for an undisclosed amount.
The auditor of ABG Shipyard, which is being probed by the Central Bureau of Investigation (CBI) for the Rs 23,000-crore default to banks, had settled an investigation by the Securities and Exchange Board of India (Sebi) by paying a small settlement fee in 2019. The regulator had initiated an investigation into the fund diversion from ABG Shipyard and had asked the auditor to explain why it failed to detect fund diversion in time. In his settlement application, auditor MN Ahmed, partner of Nisar & Kumar, a chartered accountant firm, said he ceased to be an Indian citizen and has retired from the profession.
The bidding war for Great Offshore ratcheted up a notch with ABG Shipyard saying it would come out with a counter-offer to rival Bharati Shipyard's offer of Rs 560 a share announced on Wednesday after it acquired 3.1 per cent from the open market to take its total holding to 22.4 per cent.
In a surprise move, ABG Shipyard on Wednesday exited the race to acquire Great Offshore and sold its 8.2 per cent stake to three financial investors. The ABG move comes after seven months of intense rivalry with Bharati Shipyard through a series of competitive counter-bids.
ABG Shipyard, the largest private sector shipbuilding firm, has raised the open offer price to buy out drilling firm Great Offshore to Rs 520 a share from the Rs 450 announced last week. This is the second increase in the open offer price by ABG in a week's time, as it continued to purchase shares from the open market to outbid its rival, Bharati Shipyard, in an attempt to take control of the drilling firm.
The global credit crisis has affected Korean and Chinese shipyards, which are seeing order cancellation in dry bulk and wet bulk carriers. Hindustan Shipyard, which handles both government and private clients, has not not seen any order cancellations, a top official of the company said.
If there were an Olympics for bank frauds in India, Rishi Agarwal, founder and former chairman of ABG Shipyard Ltd, a nephew of the Ruia brothers of the Essar group, would bag the gold, pushing Nirav Modi to his right, says Tamal Bandyopadhyay.
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Barring one, three are debt-free and sitting on large cash reserves.
Bharati Shipyard said it has hiked the open offer price to acquire stake in offshore service provider Great Offshore to Rs 560 per share.
The contract was cancelled two weeks ago due to the delay in the delivery of the vessels, sources said. The contract to build five warships was signed with the company in 2011, much before the Reliance Group took over the Gujarat-based shipyard from its erstwhile owner Nikhil Gandhi.
All these companies were provided loans by PNB as part of consortium lending.
First day of the sixth edition of 'Vibrant Gujarat' saw investment commitments of Rs 28,000 crore from corporates such as Essar, ABG Shipyard, Jubilant Lifescience and Adanis.
The haircut for major banks stands at 52 per cent, if the dues of Jaypee Infrastructure, Lanco Infrastructure and Era Infrastructure are kept out of the calculation.
Sanjeev Gupta of Liberty House, a global supplier of metals and engineering solutions, who has emerged front-runner for a number of stressed companies, plans to fund a string of companies through a mix of equity and debt.
Warship building projects worth at least Rs 630 billion have ground to a standstill. The defence ministry has halted tendering in wait for a government decision on whether to allow, or to exclude, Anil Ambani's shipbuilding firm from those contracts.
Stocks to watch: Pipavav Defence, ABG Shipyard, Bharati Shipyard
The Lodha Group has bought land parcels worth Rs 12,000 crore in Mumbai
The S&P BSE Sensex dropped 207 points to end at 25,230.
The average time lag between the date of occurrence of a fraud and its detection is 23 months; for large frauds (Rs 100 crore and above), it was 57 months.
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Banks, real estate and metal scrips among the top losers.
In absolute terms, the outstanding book value of NPAs of LIC in the debt portfolio across life, pension and unit-linked funds is to the tune of Rs 32,685.39 crore at the end of December 2019.
Promoters increasing stakes is definitely a positive signal for the market and investors.
BSE Power, Healthcare, Capital Goods, FMCG and Metal indices gained between 0.6-1%.
Banks do extensive investigation before declaring an account fraud; they owe it to us as they deal with our money. Why would they try to fix an innocent borrower? asks Tamal Bandyopadhyay.
Gains in financial shares capped further downslide.
The 30-share Sensex ended down 208 points at 27,057 and the 50-share Nifty closed 59 points lower at 8,094.
Financials were the top losers after sharp gains in the previous session along with ITC
Though the government says public and private shipyards compete on equal terms, public shipyards feast at the high table with the defence ministry, with only scraps being tossed to private shipbuilders.
Nifty is likely to remain under selling pressure unless and until it breach the 7,700-7,720 levels on closing basis.
The 30-share Sensex ended higher by 46 points at 26,360 and the 50-share Nifty gained 16 points at 7,891.
These firms reported a combined operating profit of Rs 26,077 crore (Rs 260.77 billion).
These next generation ships can patrol the oceans for three or four months compared to the navy's current patrol boats, which can be at sea for a maximum of 45 days.
Natco Pharma, Wockhardt and Marksans have rallied between 50 and 70 per cent in the year till date.
The crisis in Indian banking has now reached a point where the NPAs of many public-sector banks are higher than their net worth
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