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The loss making Lloyds Steel, in which Uttam Galva group acquired 58.35 percent stake recently, is set to get a further capital infusion of Rs 380 crore from the group.
Agency reports suggest that the Rs 380 crore additional investment would be used to turnaround Lloyds Steel, which posted net losses of Rs 290 crore in last three financial years.
Lloyds Steel has a total loan portfolio (both, secured and unsecured) of about Rs 384 crore and its production capacity stands at 1 million tonne per annum (mn tpa).
Last month, Uttam Galva group is said to have completed most of the formalities for buying about 58.35 percent stake in Lloyds Steel.
The group executed the acquisition in three phases and the process for this began in March, when Uttam Galva had acquired 24.53 percent stake for about Rs 180 crore.
Later, it was alloted 38 crore preferential shares by the Mumbai-based steelmaker and finally, it acquired about 6.37% stake for about Rs 77.44 crore through an open offer, which closed on November 7.
Uttam Galva group will also take over entire debt of Lloyds Steel and management control, Miglani said, adding that there is no plan to delist the Mumbai-based steelmaker in the immediate future.