Uttam Galva soars 20% on ArcelorMittal stake hike

Uttam Galva was frozen at 20% upper limit at Rs 127. Around 2.52 million shares changed the hands at the counter on the BSE today.
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(Updated at 1200 hrs)

Uttam Galva has soared 16% to Rs 122, after ArcelorMittal has acquired 29% stake in the company for Rs 422 crore through open offer, taking its holding in the domestic firm to 34%.

The stock opened at Rs 108, and touched high of Rs 123. Around 1.06 million shares have changed hands at the counter so far.

ArcelorMittal has acquired 35.2 million shares from the open market at a price of Rs 120 a share, aggregating to Rs 422 crore, the company said in its statement to BSE on Monday.

In September, 2009 the world's largest steel maker had acquired a 6% stake in the Miglani family-promoted steel company and subsequently made an open offer to acquire 35.2 crore shares of the company at a price of Rs 120 a share.

Meanwhile, the company had posted 221% jumped in net profit to Rs 17 crore in Q3 of FY10 against Rs 5 crore net profit reported in same quarter of previous year.