Uttam Galva plans Rs 2,000 cr working capital for Lloyds Steel

After acquiring majority stake in the ailing Lloyds Steel, Uttam Galva plans to raise Rs 1,500-2,000 crore working capital loan for the acquired entity and hopes to close the deal by the end of the current quarter.

"We are in discussion with public sector banks to raise working capital loan of Rs 1,500-2,000 crore for Llyods Steel and hope to close it by the end of the quarter," Uttam Galva Steels Deputy Managing Director Ankit Miglani told PTI here today.

He also said though the company is in talks with strategic investors to come on board Lloyds Steel, anything concrete is yet to come up in this regard.

Mumbai-based Lloyds Steel, which has a steel making capacity of 1 mt per annum, has a total long-term debt of Rs 441 crore in its book.

The Uttam Galva Group, promoted by the Miglani family, last year, acquired 58.35 per cent stake in Lloyds Steel, which had posted a net loss of around Rs 213 crore in the last two financial years.

Miglani had earlier told that raising of working capital loan would reduce the cost of funds for the acquired entity with significant cost saving.

He had also said the company is open to the idea of taking on board any strategic investor to raise equity.

Referring to renaming of the acquired entity, Miglani said, "Our AGM will take place this month to take a decision on the renaming of the company to Uttam Value Steels."