Gallantt Ispat is the stock in focus after the government of Uttar Pradesh (UP) declared that the company's unit is eligible for Rs 350 crore subsidies. Mayank Agrawal, CEO of the company, spoke to CNBC-TV18 about the subsidy and the reasons for reduction in promoter's stake.

“After a 10 years of long litigation fights with the UP government, we have successfully been able to achieve an order in our favour from Supreme Court (SC). So these subsidies are in two parts, one part is Rs 350 crore which is against fixed capital investment made in the unit which the SC has asked the state government to disburse it right away," Agrawal.

"The other part of it is taxes that we pay in terms of sales and purchases of the goods to the state which is also equivalent to Rs 350 crore which has to be converted into interest free loan by the state government and needs to be reimbursed after 15 years. So that amount is also equivalent to Rs 350 crore. So the total subsidy is Rs 700 crore,” he said.

“This Rs 350 crore that we are going to receive, we are going to be investing further in our projects,” he added.

“We will be definitely expanding the capacities, we will be going in for backward integration. We are going to be further expanding our steelmaking capacity to 5 lakh tonnes per year from 3 lakh thirty thousand currently which is already ongoing,” said Agrawal.