Loss-making Lloyds Steel, in which
Uttam Galva group had acquired 58.35 % stake in December, has decided to rename
itself as Uttam Value Steels and has sought shareholders approval for the same.
The company's Board has already approved the name change, and now it has sought
shareholders approval at the forthcoming Extraordinary General Meeting (EGM).
“Approval of the members of the company is hereby accorded for change in
the name of the company from Lloyds Steel Industries Ltd to Uttam Value Steels
Ltd,” Lloyds Steel said in a communication to the shareholders, calling
for an EGM on March 4 to seek their approval.
Lloyds Steel, with a production capacity of 1 million ton per annum (MTPA), has
been reporting losses for last few years. The Miglani family controlled Uttam
Galva group had acquired majority stake in the company in a deal, which was
done in three phases.
The acquisition was done by the Miglani family through two companies- Ultimate
Logistics Solutions Pvt Ltd (ULSPL) and Metallurgical Engineering and
Equipments Ltd (MEEL).
According to the financials of Lloyds Steel, the company has accumulated losses
of over Rs 290 crore in last three financial years. Also, it has a total loan
portfolio (both, secured and unsecured) of about Rs 384 crore.
Deputy Managing Director of Uttam Galva Steels Ankit Miglani, said early this
month that his group plans to raise Rs 1,500-2,000 crore working capital loan
by March to bring Lloyds Steel on track.
Uttam Galva Group and Lloyds Steel had a long business partnership. Uttam
Galva's 0.5 MTPA pig iron plant and Lloyds' steel unit are located in
Maharashatra's Wardha district. The Miglanis, who used to sell most of their
pig iron to Lloyds before acquisition, can now integrate the operations.
World's largest steel producer ArcelorMittal is also a partner of the Miglani's
controlled group and holds over 33 % stake in Uttam Galva Steels
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