Visa Steel shares locked in upper circuit of 20 per cent at Rs 16.38 on the BSE after the company said it is planning to merge its joint venture firm Visa Bao (VBL) to optimise costs and secure resources for its ferrochrome business. The company is seeking its shareholders’ approval for the same.
Shares of the company opened the day at Rs 14.49 and touched a low of Rs 14.40 before hitting the upper circuit. Around 1.29 lakh shares of Visa Steel exchanged hands on BSE against 2-week average volume 7,139 shares.
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VBL is a joint venture between Visa Steel (VSL) and Baosteel of China, with VSL holding 65 per cent stake and Baosteel the remaining. The firm will hold a postal ballot soon to seek shareholders’ approval for the proposal and the results are expected next month.
The BSE group ‘B’ stock of face value Rs 10 has touched a 52 week high of Rs 21.50 on 07-Dec-2015 and a 52 week low of Rs 12.05 on 13-Apr-2016.
Promoters hold 61.98 per cent stake in Visa Steel while institutions and non-institutions held 21.33 per cent and 16.70 per cent respectively.
Visa Steel is a flagship company of the Visa Group, which has business interests in steel, power, cement, international trading and urban infrastructure etc. The company is a leading player in the special steel, ferrochrome and metallurgical coke business in India.
(With agency inputs)