Saturday 1 September 2007

Heard on the Street

ABG Shipyard close to bagging a $ 350 mln order from European company

Sources say that ABG Shipyard is close to bagging a large overseas order worth $ 350-400 mln. The order is to be executed from its new plant, which will be commissioned from April 2008. The new facility to have capacity to deliver 12 vessels.

ABG Shipyard management said, "We keep on exploring biz opportunities, but cannot comment of any specific deal". ABG Shipyard current order book size is at Rs 5600 crore. There have also been reports that the company is frontrunner to acquire Western India Shipyard for around Rs 200 crore.

Sources: Gremach Infra to venture into oil & gas rigs

Gremach Infra is going to venture into oil & gas rigs according to sources

Gremach Infra may form 100% subsidiary Gremach energy. Gremach may place 15-25% eq in gremach energy to PE player. This move is in line with other domestic players like Aban, Mercator, and Jindal Drilling. Gremach Infra announcement is expected in next 1 month

Sources says that Gremach Infra has already ordered for 1 on-shore rigs, and delivery is expected in next 5 months. The company is Planning to order for 4 more rigs in next 5 months.

Sources: Gremach Infra Funding
Company is going to use around $ 50 mn in oil & gas business out of proposed $ 75 m FCCB issue.
Company is going to raise another $ 200 mn via debt, equity ratio of 2:1 for oil & gas business Board has already approved to raise upto Rs 1000 cr going ahead.

Management says plans are at final stage and are talking to various players for the same.

NOTE: Information displayed on the section - Heard On The Street - has not been provided to the stock exchanges, and is source-based.