ArcelorMittal and the Miglani family-controlled Uttam Galva Steels’ stock today surged to a 52-week high.
The stock touched a high of Rs 124.4 during the day on the Bombay Stock Exchange and closed at Rs 121.75, up 16 per cent.
According to market sources, investors were expecting ArcelorMittal to buy out the Miglani family’s stake in the company. The deal price was pegged to be about Rs 165 a share. However, Ankit Miglani, deputy managing director, Uttam Galva Steels, denied any such move.
In 2009, Uttam Galva had entered into a share purchase agreement with ArcelorMittal. The deal gave the world’s largest steel maker a foothold in India, after a long wait.
ArcelorMittal signed a memorandum of understanding with the Jharkhand government in 2005 for a 12 million-tonne plant and with the Odisha government for a similar size one.
None of the projects, however, have taken off, largely due to land-related issues.
The Uttam Galva purchase, on the other hand, gave ArcelorMittal a presence in a growing market. The two promoters have an equal stake in the company that adds up to about 70 per cent.
Last year, Uttam Galva also made two acquisitions, Lloyds Steel and Brahmani Steel.