Uttam Galva has rallied 6% to Rs 75.50 in morning trades on reports that promoters of the metal company may increase their stake in Lloyds Steel to 51%.
“The board of directors of Lloyds Steel Industries is schedule to meet today to consider issue of equity shares on preferential basis,” Lloyds Steel said in a filing to the stock exchanges.
“A deal with promoters of Uttam Galva could be on the agenda. The company may pay Rs 380 crore for the additional stake buy, the added. The deal will trigger open offer for Lloyds Steel,” a Bloomberg report suggests.
The stock opened at Rs 73.75 and hit a high of Rs 76.35 on the National Stock Exchange. The trading volumes on the counter surged multiple folds, with a combined 404,870 shares have already changed hands in morning deals, against an average around 150,000 shares that were traded daily in past two weeks.
Lloyds Steel on the other hand, has frozen upper circuit of 5% at Rs 8.74 with a combined 100,516 shares changed hands on the counter so far. There are a combined pending buy orders for 156,539 shares on the NSE and BSE.