Western India Shipyard.
hi,
pl find a note on taken from Wow_india.com-
ABG Shipyard is set to take over Western India Shipyard (WISL) for Rs 200 cr report papers. ABG will get management control of WISL and the 40% stake held by financial institutions led by ICICI Bank. It’s a court initiated sale as WISL has more debt in its book. The current outstanding debt is Rs 280 cr. WISL is a one of the India’s largest composite ship repairer at Goa. WISL revenues were placed at around Rs 53 cr. Assuming Rs 200 cr for the 40% stake valuations are placed at Rs 500 cr and also there is this extra 280 cr of debt giving an enterprise value of 780 cr. The ABG’s Enterprise value to sales is 4.8:1. However WISL is a loss making company and hence utilisation levels would be low. ABG has an order book of Rs 5000 cr which probably could be handled better using the facilities; this acquisition helps ABG to with a foot into ship repairing business and that should be a good fit. The acquisition seems strategically good for ABG. But the acquisition price is something where data is lacking to give a fair comment. Meanwhile the uncertainty of the subsidy continues. However, WISL got locked in circuits higher by 5%.
regards
shashi
