BSE uploaded on their website this favourable Corporate Announcement from Uttam Value Steel at 2.33 pm in the afternoon
Scripcode : 500254 Company : Uttam Value
Outcome of Board Meeting 21 Feb 2014 14:33
Uttam Value Steels Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 21, 2014, have taken the following decisions:
1. The Board, subject to the approval of the members of the Company and the relevant Stock Exchange / SEBI, has agreed to issue, offer and allot upto 12,90,32,258 equity shares of Rs. 10/- each fully paid up of the Company (the “Allottee Shares”) by way of preferential allotment at a price of Rs. 15.50/- each for an aggregate consideration of upto Rs. 200,00,00,000 (Rupees Two Hundred Crores only) by way of preferential allotment to Strategic Investor namely UD Industrial Holding Pte Limited, Singapore in accordance with SEBI (ICDR) Regulations, 2009 and relevant provisions of Company Law. The Board also considered and approved the draft Notice of Extra Ordinary General Meeting and its procedure in this regard.
2. Convening of Extra Ordinary General Meeting to approve the aforesaid matters.
3. The Scheme of arrangement between Uttam Value Steels Limited (UVSL) and Lloyds Steels Industries Limited (LSIL) which was approved by Audit Committee and Board in their Meeting held on February 11, 2014, wherein the Engineering Division of the Company proposed to be demerged in LSIL has been Postponed / Deferred for the time being.
However UttamValue Steel hit the Upper Circuit of 20% at Rs 6.72 at 10.46 am in the morning with most of the Volume of over Three Lakh Shares having taken place inside half an hour around this time against the two week average of just 12000 shares which even includes today’s volume ! ~ Those who sold clearly must have been unaware of the Notice and it’s posting on the BSE website in the afternoon after they sold in the morning !
How can BSE explain what looks like apparent Insider Trading !?….Maybe it needs SEBI’s help to do so !
Either it is clearly Insider Trading by those who knew before hand or got the notice in their hands before it was put up or BSE put it up in the morning itself on their Notice Board in the Stock Exchange Building before uploading it on their website in the afternoon at 2.33 pm
I don’t see any other Explanation to this and BSE needs to explain what really happened or else it may see it’s credibility dented even further