Uttam Galva gains on fund raising plans

The company plans to raise about Rs 175 crore through placement of shares to fund expansion and augment long term-resources.

Uttam Galva Steels is locked in upper circuit of 5% at Rs 72.55 with no sellers on the counter after the company said it planning to raise about Rs 175 crore through placement of shares to fund expansion and augment long term-resources.

The steel manufacture has called the Extra Ordinary General Meeting (EGM) on March 23, 2013 for taking shareholders approval for the same.

"The company proposes to raise funds up to Rs 175 crore in one or more tranches through a public issue and/or a private placement basis and/or QIP...," it said in a letter to the shareholders.

The stock opened at Rs 70.70 on NSE and has seen a huge trading activity. As many as a combined 13,996 shares have already changed hands on the counter till 0935 hours and there are pending buy orders for 90,155 shares on NSE and BSE.