Uttam Galva group has bought 58.35 percent stake in ailing Lloyds Steel. The acquisition has been done in three phases by the Miglani family controlled group, for which the process had begun in March, when Uttam Galva had acquired 24.53 stake stake for about Rs 180 crore. The company is also planning to invest additional Rs 380 crore in Lloyds Steel to turnaround the company.
The deal is the second major acquisition by Uttam Galva's promoters, the Miglani family, in recent times in a steel firm. Last year, the Miglanis had acquired mining baron G. Janardhana Reddy's Brahmani Industries Karnataka for about Rs 285 crore through Uttam Galva Ferrous.
Lloyds Steel, which has a production capacity of 1 million tonnes per annum (MTPA), has reported net losses of Rs 290 crore in last three financial years. The company has a total loan portfolio (both, secured and unsecured) of about Rs 384 crore.
Uttam Galva Steels (UGSL) is engaged in the business of manufacturing Cold Rolling (CR) Coils, Cold Rolled Close Annealed (CRCA), Galvanized Plain Products (GP) and Galvanized Corrugated Products (GC). Company has emerged as one of the largest manufacturers of cold rolled steel ('CR') and galvanized steel (GP) in Western India.
