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Uttam Galva group has acquired a majority stake of about 58.35 per cent in ailing Lloyds Steel and plans to invest additional Rs 380 crore 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 told PTI.
Lloyds Steel, which has a production capacity of 1 million tonnes per annum (MTPA), has reported net losses of Rs 290 crore in last three financial years. The company has a total loan portfolio (both, secured and unsecured) of about Rs 384 crore.
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 per cent stake for about Rs 180 crore.
Later, it was allotted 38 crore preferential shares by the Mumbai-based steelmaker and finally, it acquired about 6.37 per cent stake for about Rs 77.44 crore through an open offer, which closed on November 7.
According to Miglani, Uttam Galva group will turnaround the ailing Lloyds Steel within one year by infusing around Rs 380 crore additional money to improve its operations.
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