Open offer made to acquire 20 per cent of the share capital of Lloyds Steel received lukewarm response. As against proposal to acquire 26 per cent stake (worth Rs 316 crore), Ultimate Logistics Solutions and Metallurgical Engineering and Equipments acquire 6.36 per cent shares only, valued at Rs 77 crore.

The open offer was made at Rs 11.65 a share. The response was poor despite the share was hovering between Rs 11.5 and Rs 12 during the open offer period between October 23 and November 7. The share had fallen 4 per cent on Friday to close at Rs 12.12 on the BSE.

The open offer was made due to an exercise of option for full conversion of warrants into equity shares. This was part of long-term capital infusion by promoters pursuant to terms of restructuring plans with one of the lenders.

In July, the company issued 38 crore equity shares to Ultimate Logistic Solutions and Metallurgical Engineering Equipment (non-promoter companies) on a preferential basis at Rs 10 a share. It also appointed UN Challu, BL Khanna and Ashok Tandon as directors on board. Both these proposals were approved by an extraordinary general meeting held on July 14.

On September 6, the company announced that it had negotiated and amicably settled a disputed loan restructuring terms and conditions with Asset Reconstruction Company (ARCIL). As a result, ARCIL has withdrawn the suit filed before the Bombay High Court along with allegations that the proposed preferential allotment by the company approved in its EGM does not meet one of the terms set out in the letter of intent for restructuring the ARCIL debt.

The Bombay High Court vide its order dated August 27 disposed the suit as withdrawn. The order further clarifies that the interim orders passed earlier shall cease to be in force, said Lloyds in a statement.

Centrum Capital acted as an adviser to the transaction and manager to the offer.

Lloyds is in the business of manufacturing of steel and capital equipment and in execution of turnkey projects. It has an engineering plant at Murbad, Thane and a steel manufacturing plant at Wardha, Maharashtra.

> suresh.iyengar@thehindu.co.in