Tata Steel rose 0.46% to Rs 330.55 at 9:24 IST on BSE after the company said it has accepted seven expressions of interest for the sale of its UK business.
The announcement was made after trading hours yesterday, 9 May 2016.Meanwhile, the BSE Sensex was down 4.14 points, or 0.02%, to 25,684.72 .
On BSE, so far 1.10 lakh shares were traded in the counter, compared with an average volume of 12.11 lakh shares in the past one quarter. The stock hit a high of Rs 331.55 and a low of Rs 328.65 so far during the day. The stock hit a 52-week high of Rs 381.20 on 11 May 2015. The stock hit a 52-week low of Rs 200 on 29 September 2015. The stock had underperformed the market over the past one month till 9 May 2016, rising 2.11% compared with 4.11% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 39.69% as against Sensex's 6.94% rise.
The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.
The board of Tata Steel Europe announced that seven expressions of interest submitted for Tata Steel's UK business have been immediately taken forward to the next stage of the sale process. In addition, Tata Steel Europe is clarifying outstanding points with a number of other parties who have submitted an expression of interest. The remaining parties who submitted expressions of interest have been thanked for their participation in the process but informed that their expressions would not be taken forward currently. As previously announced it is Tata Steel Europe's primary intention to assess expressions of interest for the whole of Tata Steel's UK business. The seven expressions of interest being immediately taken forward are on this basis. Expressions of interest for parts of the UK business are not being taken forward at this point. In the next phase of the sales process the progressing interested parties will be given access to further business information and management team presentations in order for them to rapidly progress their interest to a binding stage.
Tata Steel Europe said on 20 April 2016 that it welcomes credible expressions of interest for Tata Steel UK's operations. The company issued the clarification after recent media reports suggesting a possible management buyout of Tata Steels' Port Talbot manufacturing facilities in UK. Port Talbot is Tata Steel's biggest UK plant with about 4,000 workers, according to reports. 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.
On consolidated basis, Tata Steel reported net loss of Rs 2127.23 crore in Q3 December 2015 as against net profit of Rs 157.11 crore in Q3 December 2014. Net sales declined 16.5% to Rs 27818.73 crore in Q3 December 2015 over Q3 December 2014.
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Tata Steel is Europe's second largest steel producer, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe. The combined Tata Steel group is one of the world's largest steel producers, with a steel capacity of more than 28 million tonnes and 80,000 employees across five continents.
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