Uttam Galva Steel today said the number of company's shares pledged with lenders has come down considerably with 11 of its promoters revoking nearly 10 per cent of the pledged holding.
In a disclosure to the Bombay Stock Exchange, the company said among the 11 promoters, Anuj Miglani and R K Miglani had revoked 1.19 and 0.91 per cent stake respectively.
"The stake was pledged as Non-Depository Undertaking with the banks and these shares are now revoked. The amount received out of the share pledge by the promoters had been utilised to fund company's operation," Uttam Galva Director (Commercial) Ankit Miglani said.
Pursuant to the said revocation, the pledged holding of the promoters now stands at 17.71 per cent, down from 27.35 per cent of the total share capital of the company in the June quarter.
Among other promoters, Ankit Miglani revoked 0.69 per cent stake, P K Miglani (0.15 per cent), Neelam Miglani (0.58 per cent) and Nitin Miglani (0.04 per cent).
As of June quarter, the promoters had pledged 67.19 per cent of their holding, which has now come down to 49.97 per cent pursuant to the said revocation.
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On September 4, the promoters of Uttam Galva Steel had entered into a share purchase agreement with global steel giant ArcelorMittal.
As per the agreement, ArcelorMittal would acquire a stake equal to that of current promoters and become a co-promoter in Uttam Galva.
ArcelorMittal, has already entered into pact with the company's Galva's promoter for acquiring a 5.6 per cent stake, and would acquire an additional 29.4 per cent stake at Rs 120 per share through an open offer scheduled to begin on October 31.
When asked as to when the promoters would get the stake sell proceeds Miglani said: "We are awaiting regulatory approval for the 5.6 per cent stake transfer. The promoters will receive Rs 120 a share for the said stake sell off."
The transaction value for 35 per cent stake is Rs 500 crore implying an enterprise value of Rs 2,800 crore, the company had earlier said.
Shares of Uttam Galva closed at Rs 125.75, down 2.03 per cent on the BSE.