Uttam Galva Steels shares rallied as much as 17.30 per cent intraday on Tuesday following reports that the company’s unit Shree Uttam Steel & Power and POSCO will set up an integrated steel plant under a joint venture (JV).

At 1.09 pm, shares of Uttam Galva Steels were trading 9.11 per cent higher at Rs 41.30. It opened at Rs 37.80 and touched a high and low of Rs 44.40 and 37.80, respectively, in trade so far

The proposed JV plans to set up 3 mtpa integrated steel plant at Satarda in Maharashtra in two phases.

For the quarter ended March 31, 2015, the company posted net profit of Rs 9.58 crore, down 36.64 per cent, against Rs 15.12 crore in the corresponding quarter a year ago.

The share price of Uttam Galva Steels closed 7.93 per cent higher at Rs 40.85 on BSE.

(With inputs from Reuters)