ABG Shipyard's foreign equity limited to 21.91 per cent
17 Mar 2011
ABG Shipyard Ltd has fixed its foreign equity limit at the current level if 21.91 per cent in order to be eligible to undertake defence production, the company said in a filing with the Bombay Stock Exchange (BSE).
ABG Shipyard had applied for an industrial licence for defence production as the defence sector has been opened up by the ministry of defence and the company has been granted a licence.
It had also sought to raise its foreign equity level to 26 per cent as prescribed by the Foreign Investment Promotion Board (FIPB).
However, while granting the licence, the FIPB has fixed the foreign investment limit in the company at the existing level.
Accordingly, ABG Shipyards, vide circular resolution dated 17 March 2011, fixed the maximum foreign equity participation in the company at 21.91 per cent in line with the FIPB approval, the filing added.
The company has requested the BSE to take necessary steps to check foreign equity holding in the company, which should not cross 21,91 per cent.
