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JSW Steel slips on buzz of bidding for Tata Steel's UK assets

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Capital Market
Last Updated : May 11 2016 | 12:01 AM IST

JSW Steel fell 2.29% to Rs 1,296.50 at 12:45 IST on BSE on reports the company is among seven bidders shortlisted for Tata Steel's UK assets.

Meanwhile, the BSE Sensex was up 26.95 points, or 0.10%, to 25,715.81 .

On BSE, so far 26,000 shares were traded in the counter, compared with an average volume of 85,425 shares in the past one quarter. The stock hit a high of Rs 1,324.80 and a low of Rs 1,292 so far during the day. The stock hit a 52-week high of Rs 1,379 on 29 April 2016. The stock hit a 52-week low of Rs 801 on 28 July 2015. The stock had outperformed the market over the past one month till 9 May 2016, rising 4.20% compared with 4.11% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 32.35% as against Sensex's 6.94% rise.

The large-cap company has an equity capital of Rs 241.72 crore. Face value per share is Rs 10.

Tata Steel announced after trading hours yesterday, 9 May 2016, that it has accepted seven expressions of interest for the sale of its UK business. Tata Steel Europe has not disclosed details of bidders.On 11 April 2016, Tata Steel Europe announced that the company has commenced the formal process for the divestment of its entire holding in its British subsidiary Tata Steel UK. Tata Steel Europe has decided to sell its entire holding in Tata Steel UK due to the deteriorating financial performance of the UK subsidiary.

Shares of JSW Steel fell on concerns about the acquisition of the loss making business and possible increase in debt to finance the acquisition if it becomes a successful bidder.

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On a consolidated basis, JSW Steel reported net loss of Rs 923.34 crore in Q3 December 2015 compared with net profit of Rs 328.94 crore in Q3 December 2014. Net sales dropped 33.3% to Rs 8621.49 crore in Q3 December 2015 over Q3 December 2014.

JSW Steel is India's leading private sector steel producer. Its footprint extends to the US, South America and Africa.

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First Published: May 10 2016 | 12:46 PM IST

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