ABG Shipyard has fixed its foreign equity limit at the current level if 21.91% in order to be eligible to undertake defence production. The company has also applied for issuance of Industrial Licence for defence production as the defence sector has been opened up by the Ministry of Defence.
In the said process, the company had applied for FIPB (Foreign Investment Promotion Board) approval to take up defence contracts and also for the foreign equity holding upto 26% which is a procedural requirement. At the time of making application, the foreign equity holding in the company was 21.91%.
Vide their letter dated March 03, 2011, FIPB has accorded their approval for the company’s request. However, while granting the said approval, FIPB has fixed the foreign equity holding at 21.91% as the maximum ceiling.
ABG Shipyard is engaged in the business of carrying shipbuilding and ship repair business. The company has emerged as the largest private sector shipbuilding yard in India with satisfied customer base all around the world.
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