Bharati Shipyard price, volume shoot up

Shares of Bharati Shipyard, which is in the race for controlling Great Offshore, rose by 11.64 per cent to Rs 177 on Wednesday, when the benchmark index Sensex fell by 255.62 points or 1.5 per cent.  Over 20 lakh shares were traded on BSE and 30.35 lakh shares on the NSE, raising speculation about the company’s next move. A section of analysts think that Bharati may pull out of the takeover race for Great Offshore, as after its rival ABG Shipyard made the counter bid, the valuation of Great Offshore has become too expensive.  While Bharati has so far acquired 19 per cent stake, ABG also picked up 9 per cent, taking the offer to Rs 520 per share, which is 28 per cent higher than Bharati’s offer price of Rs 405. Further acquisition in Great Offshore at the current price might put pressure on the Bharati’s financials, say analysts.  However, some industry observers are of the view that Bharati would acquire another 6 per cent stake and take its total to 26 per cent, making it difficult for ABG to take full control of the company. With 26 per cent stake it will have a say on the running of Great Offshore, to which Bharati has a large order book exposure. The move will eventually be positive for Bharati, they feel.  “I have not seen any new orders or any other trigger that should drive the stock to this extent. The way the two companies have gone so far, there is every chance Bharati may counter ABG’s bid,” said a shipping analyst with a Mumbai-based brokerage firm.
Stocks of Great Offshore fell 2.15 per cent to Rs 536.85 on the BSE while ABG’s declined 0.06 per cent to Rs 179.25.