On December 24,2009 and then soon after on January 7,2010 I had blogged on Lloyds Steel and asked you to watch out for it in 2010…it was Rs 9 in December 2009 then flared up in January to Rs 13+ going all the way to Rs 20 before reacting back to Rs 12…past few days it’s been lively and gone up past Rs 15 to settle at Rs 14 today…..I had stated that a Turnaround was in the offing and the Promoters were awarding Convertible Warrants to themselves to up their stake from just below 18% to past 54% on conversion
Check out these earlier Blogs
LLoyds Steel closes strong at Rs 12.91 despite going into Trade-to-Trade from tomorrow
Thursday, January 7th, 2010
Lloyds Steel @ Rs 9/10…Turnaround from Treachery !?
Thursday, December 24th, 2009
Lloyds Steel has just allotted, on October 29,2010, 1,68,500,000 shares on conversion of the Warrants issued to the Promoters two companies,Shree Global Tradefin Ltd and Trump Investments Ltd…Thus these two companies which held 9.09% of the Equity of Rs 224.16 crs will now hold 48.23 % of the new Equity of Rs 392.66 crs,up by 39.14 %
The promoters who held 17.61% of the Equity,which included the 9.09% held by the above two promoter companies, will now hold a controlling stake of 57.75% with this conversion at par value of Rs 10
The conversion has been done within 2010 itself when it could have been done by mid 2011 too….this is a positive sign as promoters have infused the committed fresh funds into the company,albeit at par through this conversion
Now await the next step…demerging the Engineering Division into a company to unlock it’s potential…..Shareholders will get free shares of this demerged company
Looks Like 2011 will be an interesting and rewarding year for Shareholders of Lloyds Steel as it’s restructuring of debt and infusion of fresh equity to bring down the leverage and it’s return to profitability sparks of it’s revival
Cheers !