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Shares of Visa Steel Ltd today surged 20 per cent after the company said it will seek shareholders’ approval for the merger of its joint venture firm Visa Bao Ltd (VBL) to optimise costs and secure the availability of resources for its ferrochrome business.
The stock zoomed 20 per cent to Rs 16.38 — its highest trading permissible limit — for the day on the BSE.
On the NSE, it soared 19.7 per cent to touch the upper circuit limit of Rs 16.40.
VBL is a joint venture between VSL and Baosteel of China, with VSL holding 65 per cent stake.
The firm will hold a postal ballot soon to seek shareholders’ approval for the proposal and the results are expected next month.
In order to have sustainable growth, it is necessary for any ferrochrome producer to have captive chrome ore mine or a captive power plant, if not both, VSL had said in a regulatory filing yesterday.
“Hence, with a view to achieving competitive advantage to ensure availability of chrome ore and concentrates and optimise the utilisation of the power plant capacity, it is intended to consolidate the ferrochrome business of VSL and VBL by amalgamating VBL with VSL,” it added.
Explaining the rationale behind the merger, the firm said at present, VSL has two submerged arc furnaces for production of 60,000 tonnes per annum (TPA) of ferrochrome and has a 75 MW captive power plant, with infrastructure to scale this up to 1.20 lakh TPA.
GVK Power stocks spurt
Shares of GVK Power & Infrastructure today ended with nearly 16 per cent gains after the company sought shareholders’ approval for increasing the maximum limit of loans and guarantees that can be given to other entities.
The stock zoomed 15.91 per cent to settle at Rs 5.61 on the BSE. During the day, it surged 19.83 per cent to Rs 5.80.
On the NSE, it soared 15.46 per cent to close at Rs 5.60.
In terms of volume, 25.30 lakh shares of the company were traded on the BSE and over one crore shares changed hands on the NSE during the day.
GVK Power & Infra has sought shareholders’ approval for increasing the maximum limit of loans and guarantees that can be given to other entities to Rs 15,000 crore from the current limit of Rs 10,000 crore.
In a BSE filing yesterday, the company said it has sought shareholders' approval through postal ballot for increasing the existing “overall limits by Rs 5,000 crore for making investments/giving loans/guarantees/providing securities in terms of Sec 186 of the Companies Act, 2013, read with Rule 13 of Companies (Meetings of Board and its Powers) Rules, 2014.”
Section 186 pertains to certain transactions entered into by a company directly or indirectly. These include loans given to any person or other body corporate and guarantee or security provided in connection with a loan to any entity.
The last date for voting on the postal ballot is July 7, the filing added.
YES Bank shares climb
Shares of YES Bank rose over 2 per cent in early trade today after the bank said it has acquired an 8 per cent stake in Receivables Exchange of India (RXIL).
The stock gained 2.1 per cent to Rs 1,062.20 on the BSE. On the NSE, it jumped 2.14 per cent to Rs 1,062.40.
“YES Bank has executed a share subscription and shareholders’ agreement agreeing to subscribe for 20,00,000 equity shares of RXIL,” it had said in a BSE filing yesterday.
The bank said the subscription is equivalent to 8 per cent of the post-issue paid-up capital of RXIL.
RXIL is a joint venture company set up by NSE Strategic Investment Corporation and Small Industries Development Bank of India (SIDBI).
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