This steel stock zoomed 58% in 3 days; trades above open offer price

Sal Steel was locked at the 10% upper circuit in Tuesday's trading session; after having hit the 20% upper limit in the preceding two trading sessions.

SAL Steel stock price today

  SAL Steel stock was locked at the 10 per cent upper circuit at ₹29.30 in Tuesday's intra-day trade on the BSE, on the back of heavy volumes. The counter saw over 21-fold in trading volumes, with around 1.63 million shares changing hands on the BSE as against the 2-week average volume of around 75,000 equity shares.  In the previous two trading sessions, SAL Steel was locked at the 20 per cent upper circuit. Thus, the stock has now zoomed 58 per cent in just three trading sessions after Sree Metaliks inked a deal with the existing promoters to buyout the company.  Track Stock Market LIVE Updates 

Here's what triggered the rally in SAL Steel share price

  The rally in SAL Steel share price is attributed to change in ownership, and open offer trigger owing to the same.  Last week in an exchange filing SAL Steel announced its decision to transfer the entire shareholding from present promoters to Sree Metaliks; and issue for additional equity shares by way of preferential issue and warrants in favour of the latter.  According to the Share Purchase Agreement signed between Shah Alloys Limited (Promoter 1), SAL CARE Private Limited (Promoter 2) and Sree Metaliks Limited (Acquirer), the existing promoters entered into an agreement to exit the shareholding for a consideration of ₹107.40 crore.  Additionally, the board approved fund raising of up to ₹99 crore by way of preferential allotment of 1.92 crore equity shares at an issue price of ₹18 each; and 3.57 crore warrants convertible into equity shares at a price of ₹18 each to Sree Metaliks. The cumulative equity transfer by this route stands at 37.99 per cent.  Following the share sale, Sree Metaliks, the acquirer, announced an open offer to acquire up to 3.76 crore shares representing 26 per cent of the company's expanded equity capital at ₹25 per equity share.  The exchange filing showed, Sree Metaliks shareholding can rise up to 96.98 per cent in the event of entire 26 per cent of equity shares are tendered in the open offer; whereas in case of NIL shares, the stake would stand at 70.98 per cent.  Since this open offer is a triggered open offer, owing to transfer of ownership, the offer is now subject to any minimum level of acceptance. The open offer dates are awaited. The company had fixed it Annual General Meeting for September 26, 2025.