 "Uttam Galva plans QIP to raise working capital for Lloyds Steel")
Uttam Galva plans to raise Rs 1,500-2,000 crore working capital for the acquired company.
The Uttam Galva Group, promoted by the Miglani family, had acquired 58.35% stake in Lloyds Steel last year.
Lloyds Steel has accumulated losses of over Rs 290 crore in the last three financial years. The Mumbai-based Lloyds Steel, with a steel making capacity of 1 mt per annum, has a total long-term debt of Rs 441 crore in its book.
On Monday, Uttam Galva Steels Ltd has informed BSE that a meeting of the board of directors of the company will be held on February 26, 2013, to consider the raising of funds through Qualified Institutional Placement (QIP).
Ankit Miglani, Deputy Managing Director, Uttam Galva Steels is reportedly said that the company is in talks with strategic investors to come on board Lloyds Steel. The acquisition was done by the Miglani family through two companies—Ultimate Logistics Solutions Pvt Ltd and Metallurgical Engineering and Equipments Ltd.