QIP: Uttam Galva fixes floor price at Rs 76

Our Bureau Mumbai | Updated on March 25, 2013 Published on March 25, 2013

Uttam Galva Steels has set a floor price of Rs 76.48 a share for raising funds through qualified institutional placement issue being executed through the book building route.

The company’s shares on Monday closed three per cent higher at Rs 80.20 on the BSE.

It plans to raise Rs 175 crore through the issue. The floor price for the qualified institutions placement was based on the pricing formula prescribed by SEBI… and, the ‘Relevant Date’ for this purpose is March 25, said the company in a statement.

Currently, promoters hold 70.83 per cent stake in the company, including global steel major ArcelorMittal’s 34 per cent stake. Foreign institutional investors have an exposure of 15.27 per cent stake in Uttam Galva Steels.

Gets nod

The company received the approval for raising fund at an extraordinary general meeting held on March 23. It also received nod from shareholders to increase in FII (foreign institutional investor) limit up to the sectoral cap, which is 100 per cent, according to the extant FEMA/RBI stipulations.

The company plans to utilise the funds for general corporate business purpose and allied business expenses that arise time to time.

Uttam Galva Steels produces high end steel which are largely exported. It has a production capacity of 10 lakh tonne in Maharashtra.

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Published on March 25, 2013
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