The Uttam Galva Steels stock on Tuesday rose on reports that POSCO, the South Korean steelmaker, has signed an agreement with Uttam Steel and Power to set up a 3 million tonne-per-year integrated steel plant in Maharashtra.
Uttam said on Tuesday that the proposed joint venture plans to set up the steel plant in two phases and take advantage of an expected surge in steel demand in India.
Uttam Steel and Power is owned by the co-promoters of Uttam Galva Steels, which is jointly owned by the world's largest steelmaker ArcelorMittal.
Uttam Galva shares surged as much as 16 per cent in morning trade on news of the joint venture. The stock closed 7.93 per cent higher at Rs 40.85 on the BSE.