If the latest news report is to be believed then Punj Lloyd, the engineering and construction giant, is looking forward to sell its stake in Pipavav Shipyard. It would be doing so to the co-founder of the shipping-related company, SKIL Infrastructure.

It would be selling as much as 19 per cent of its stake. This step has been taken since Punj Lloyd needs cash and the company is following the asset-sale method.

The report was first released by a private business newspaper, Economic Times, on Saturday.

The news report claims that Rs. 7 billion will be involved in this deal. It also said that the shares are being sold out at a discounted rate, which is lesser than the market price. This is because Punj Lloyd is selling before the end of three-year lock-in period.

No comment on the issue came from either of the parties.

SKIL has 20 per cent stake in Pipavav and as per the regulations, it will have to make an offer of another 20 per cent to the minority shareholders.

Pipavav Shipyard was listed in 2009. As per Indian requirements, the shares of the founder remain locked in for three years.