No proposal from ArcelorMittal for more stakes: Uttam Galva

Uttam Galva Steels today said it has not received any proposal from ArcelorMittal for acquiring additional stake in the company.

"...there is no such proposal by ArcelorMittal Group to acquire any further stake/shares in Uttam Galva Steels," the Mumbai-based firm said in a BSE filing.

ArcelorMittal, now a co-promoter of the Mumbai-based galvanised steel maker Uttam Galva, has 33.80 percent stake in the company as on December-end. The Miglani family, the original promoter, has 37 percent holding.

Unconfirmed reports had said that the world's largest steel maker ArcelorMittal was planning to buy out the Miglani family's entire stake in the firm.

Following the reports, shares of Uttam Galva Steel had initially risen by 16 percent on the BSE. However, it is trading at Rs 114.90 in the afternoon session, 5.63 percent lower over the previous close.

Uttam Galva Steels, according to its website, has three galvanising lines with a total capacity of 3.5 lakh tonnes per year. It has its own cold rolling facility with a capacity of five lakh tonnes per annum.

More than 70 percent of the company's products are exported to over 100 countries.

India, now the world's fourth largest steel producer with an installed capacity of 90 million tonnes per annum, aims to increase capacity to 200 mtpa by 2020.