Uttam Galva Steels shares rally over 8% in today’s trade, here is why

By: | Updated: July 27, 2016 4:32 PM

Uttam Galva Steels shares soared over 8 per cent on Wednesday after a CNBC TV18 report that the Uttam Galva Group is hoping to raise up to Rs 7,000 crore through sale of three plants and subsidiaries.

BSE Sensex, NSE Nifty, Uttam Galva Steels sharesUttam Galva Steels shares soared over 8 per cent on Wednesday after a CNBC TV18 report that the Uttam Galva Group is hoping to raise up to Rs 7,000 crore through sale of three plants and subsidiaries. (Photo: Reuters)

Uttam Galva Steels shares soared over 8 per cent intraday on Wednesday after a CNBC TV18 report that the Uttam Galva Group is hoping to raise up to Rs 7,000 crore through sale of three plants and subsidiaries. The group is likely to sell Uttam Metallics and Uttam Value Steel plants at Wardha. According to the report, Uttam Galva may also sell its plant at Khopoli.

Reacting on the news, shares of Uttam Galva Steel were trading 7.42 per cent up at Rs 34.75 in the afternoon trade. The scrip opened at Rs 32.55 and has touched a high and low of Rs 36 and Rs 32.15, respectively, in trade so far. Later, the share price of the company ended 5.87 per cent up at Rs 34.25.

The group has a total debt of around Rs 10,000 crore, according to the report.

The BSE has also sought clarification from Uttam Galva Steels Ltd on the news article flashed on CNBC TV 18 stating “Uttam Galva likely to sell Khopoli and Wardha plant”.

For the quarter ended March 31, 2016, Uttam Galva Steel reported net loss of Rs 1132.96 crore aganst net profit of Rs 9.58 crore in the corresponding quarter a year ago.

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