The curious case of Uttam Galva stock
The delisting of the company may have taken public investors by surprise, but its promoters managed to divest most of their stake well in time.
Why read this story?
Editor's note: Uttam Galva Steels was the cynosure of all eyes on Monday. Trading volumes in the little known, bankrupt company suddenly spiked to over 2.5 million shares, a jump of more than 10x its three-week average. This led to its shares getting locked into the upper circuit, meaning there were only buyers for the stock. There were good reasons for this. During trading hours on the preceding Friday, Uttam Galva had informed the stock exchanges that the National Company Law Tribunal had finally approved its debt resolution plan. It followed it up with another notice to the exchanges on Saturday, saying that its shares should be delisted. This is what it said: This is to inform you that the delisting of the corporate Debtor’s equity shares is to take place pursuant to the Resolution Plan. The provisions relating to providing an exit opportunity under the Delisting Regulations are not applicable to the delisting of equity shares of the Corporate Debtor. This is for your information and record. The same day (Saturday), The Economics Times ran a story titled “NCLT approves ArcelorMittal …
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