ICICI Bank has reportedly acquired 11.08% stake in ABG Shipyard by converting its debt into equity. Lenders now have 49% stake in the company and are actively scouting for an investor to sell their stake. Other lenders such as State Bank of India and Punjab National Bank have 7% stake each by converting debt into equity.
After the company failed to repay their dues and infuse capital into the company to sustain its operations, lenders appointed investment banker Rothschild to find a buyer for their 49% stake. The company has outstanding loans of Rs 16400 crore.
ICICI Bank has acquired the said stake by exercising its option of converting CCPS or compulsorily convertible preference shares into equity.
ICICI Bank is India’s largest private sector bank with consolidated total assets of $138.67 billion as of March 31, 2016. Its subsidiaries include India's leading private sector insurance companies, securities brokerage firm and mutual fund. The bank’s presence currently spans 17 countries, including India.
