Indian multinational bank ICICI Bank has taken over 11 million shares in ABG Shipyard in a debt-for-equity deal that gives it an 11.08% stake in the yard,
Creditors now own a 49% stake of the struggling company, led by State Bank of India, and last month enlisted the help of Rothschild to find it a new owner.
A new buyer must be found within 18 months according to usual Reserve Bank of India procedures.
ABG Shipyard shares rose over 9% on the news of ICICI taking the significant stake.
The debt-ridden shipyard reported a net loss of Rs 1,710.68 crore ($254.8m) for the first quarter of 2016, considerably more than the loss of Rs 374.86 crore ($55.8m) reported in the same period of 2015.
