Pipavav Shipyard Ltd is in advanced talks to sell stake to an international shipyard and a deal is likely within the next two weeks, a source with direct knowledge of the matter said on Tuesday, Reuters reports.
"Pipavav is talking to a large international player. It would take about one or two weeks for the deal," the source said.
India's largest shipyard by market capitalisation hopes to sell the shares at a 20 percent premium to its current market price, the source, who declined to be identified ahead of a public announcement, told Reuters.
At the current market price, this would come to more than 100 rupees a share.
Earlier on Tuesday, Pipavav shares rose nearly 10 percent after a television channel reported the firm was in talks to sell a stake. At 2:30 p.m. the shares were up 8.64 percent at 88.65 rupees in the Mumbai market.
Pipavav Shipyard's promoters currently hold about 45 percent in the firm, data from the stock exchange showed.
"Pipavav is talking to a large international player. It would take about one or two weeks for the deal," the source said.
India's largest shipyard by market capitalisation hopes to sell the shares at a 20 percent premium to its current market price, the source, who declined to be identified ahead of a public announcement, told Reuters.
At the current market price, this would come to more than 100 rupees a share.
Earlier on Tuesday, Pipavav shares rose nearly 10 percent after a television channel reported the firm was in talks to sell a stake. At 2:30 p.m. the shares were up 8.64 percent at 88.65 rupees in the Mumbai market.
Pipavav Shipyard's promoters currently hold about 45 percent in the firm, data from the stock exchange showed.