On March 4, Lloyds Steel has called an Extraordinary General Meeting of its shareholders to clear the change in the name of Lloyds Steel Industries to Uttam Value Steels after Uttam Galva group acquired 58.35 per cent stake in Lloyds.
It may be noted that the board of directors of the firm cleared the change in name of the company recently.
Earlier, the Miglani family controlled Uttam Galva group acquired majority stake in Lloyds Steel, which has been reporting losses for last few years, in a deal, which was done in three phases.
Lloyds Steel has a production capacity of 1 million tonne per annum (mn tpa). The acquisition was done by the Miglani family through two companies -- Ultimate Logistics Solutions Pvt Ltd (ULSPL) and Metallurgical Engineering and Equipments (MEEL).
Lloyds Steel has accumulated losses of over Rs 290 crore in last three financial years. Besides, it has a total loan portfolio (both, secured and unsecured) of about Rs 384 crore.
Lloyds has also sought approval to convert 226,950,000 Redeemable Preference Shares of Rs 10 each, that was issued to IDBI Bank into 15 crore equity shares of Rs 10 each at a price of Rs 15.13 per share.
Post conversion, promoters' (Uttam Galva group's) stake in Lloyds Steel will come down to 51.02 per cent from existing 58.35 per cent, while IDBI Bank will hold 12.56 per cent stake in the company.