Visa Steel surged 19.78% to Rs 21.50 at 14:55 IST on BSE after the Reserve Bank of India hiked foreign investment limit in the company to 74% from 24%.
Meanwhile, the S&P BSE Sensex was up 199.25 points or 0.61% at 32,631.94. The S&P BSE Sensex was up 41.60 points or 0.25% at 16,967.26.
On BSE, so far 2.34 lakh shares were traded in the counter as against average daily volume of 17,394 shares in the past one quarter. The stock hit a high of Rs 21.50 and a low of Rs 19.40 so far during the day. The stock had hit a 52-week high of Rs 30.20 on 4 May 2017. The stock had hit a 52-week low of Rs 14.55 on 6 October 2017.
The stock had outperformed the market over the past one month till 13 October 2017, rising 4.66% compared with the Sensex's 0.77% gains. The stock, however, underperformed the market over the past one quarter, sliding 20.4% as against the Sensex's 1.23% rise. The scrip had also underperformed the market over the past one year, rising 11.56% as against the Sensex's 17.33% rise.
The small-cap company has equity capital of Rs 110 crore. Face value per share is Rs 10.
The Reserve Bank of India after market hours on Friday, 13 October 2017 notified that Foreign Institutional Investors (FIIs)/Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in Visa Steel has increased from 24% to 74% of its paid up capital.
Further, it is notified that the NRI investment limit under Portfolio Investment Scheme in the company has increased from 10% to 24% of its paid up capital. Visa Steel has passed necessary resolutions of its Board of Directors and General Body as required under the FEMA, 1999 and the regulations framed thereunder.
Further, owing to the increase in the investment limit, it is notified that the aggregate shareholding by FIIs/FPIs in Visa Steel has gone below the prescribed FIIs/FPIs investment limit for the company. Hence, the restrictions placed on the purchase of shares of the company by FIIs/FPIs are withdrawn with immediate effect.
Meanwhile, Visa Steel after market hours on Friday, 13 October 2017 said that the scheme of amalgamation of Visa BAO with Visa Steel has been approved by the National Company Law Tribunal, Kolkata Bench, vide order dated 12 October 2017.
Visa Bao, a joint venture between Visa Steel and Baosteel Resources, China (a wholly owned subsidiary of China Baowu Steel Group) wherein Visa Steel holds 65% stake and Baosteel holds 35% stake, is in the process of amalgamating with Visa Steel, consequent to which Baosteel will hold 5% stake in Visa Steel.
Visa Steel reported net loss of Rs 49.05 crore in Q1 June 2017, higher than net loss of Rs 30.25 crore in Q1 June 2016. Net sales rose 61.58% to Rs 401.08 crore in Q1 June 2017 over Q1 June 2016.
Visa Steel is operating a fully integrated 0.5 million TPA special steel plant with a blast furnace, sponge iron plant, steel melting shop & rolling mill and 150,000 TPA ferro chrome plant at Kalinganagar in Odisha.
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