New Delhi : Uttam Galva group has acquired majority stake of about 58.35% in ailing Lloyds Steel and plans to invest additional Rs.380 cr in the steelmaker to turnaround the company.
“It is a matter of paper work now. Most of the formalities (related to acquisition) have been completed and by November 25, we will have majority stake on paper as well,” Uttam Galva Steels’ Deputy Managing Director Ankit Miglani said.
The acquisition has been done in three phases by the Miglani family controlled group, for which the process had begun in March, when Uttam Galva had acquired 24.53% stake for about Rs.180 cr. Later, it was alloted 38 cr preferential shares by the Mumbai-based steelmaker and finally, it acquired about 6.37% stake for about Rs.77.44 cr through an open offer, which closed on November 7.
According to Miglani, Uttam Galva group would turnaround the ailing Lloyds Steel within one year by infusing around Rs.380 cr additional money to improve its operations.
“We are infusing about Rs.380 cr into the company. All the money will go into the company to improve its operations and cash requirements. Within one year, we will make Lloyds Steel profitable,” he said. There is no plan to delist the Mumbai-based steelmaker in the immediate future.