Lloyd Steel surges on heavy volumes

The board has decided to change the name of the company to Uttam Value Steels Limited

Lloyd Steel Industries has surged 16% to Rs 13.32 on back of over ten-fold jump in trading volumes. The stock opened at Rs 11.80 and hit a high of Rs 13.80 on the NSE. A combined 4.15 million shares have already changed hands on the counter so far against an average sub 300,000 shares that were traded daily in past two weeks.

The board of directors of the company at their meeting held today has decided to change the name of the company to Uttam Value Steels Limited subject to ROC and other statutory approvals.

The board approved the resignation of Mukesh Gupta as chairman and Rajesh Gupta as managing director of the company.

 

“The board also approved appointment of Rajinder Miglani as an additional director and chairman, while Ankit Miglani as an additional director of the company,” the company said in a statement.

In November, the Miglanis of Uttam Galva Steel Ltd, which is co-promoted by ArcelorMittal, through Uttam Galva Metallics bought a 58.35% stake in Lloyds Steel.

The deal was done in phases with the first stake of 24.53% bought in March this year for Rs 180 crore. Later, the company was allotted 38 crore preferential shares and then acquired 6.37% stake through the open offer route for Rs 77.44 crore. The company has said that it will invest Rs 380 crore in Lloyds Steel to revive the loss-making company.