Tata Steel rose 1.76% to Rs 360.65 at 10:05 IST on BSE on media reports that UK government is ready to take up 25% stake in the company's UK plants in rescue deal.
Meanwhile, the S&P BSE Sensex was down 16.76 points or 0.06% at 25,863.62.
On BSE, so far 4.60 lakh shares were traded in the counter as against average daily volume of 14.30 lakh shares in the past two weeks. The stock hit a high of Rs 363.50 and a low of Rs 358.05 so far during the day. The stock had hit a 52-week high of Rs 384.20 on 6 May 2015. The stock had hit a 52-week low of Rs 200 on 29 September 2015.
The large-cap company has equity capital of Rs 971.22 crore. Face value per share is Rs 10.
According to reports, the UK government said that any deal with regard to Tata Steel's UK plants would be on commercial terms and most likely to be debt financing, though an equity stake is also an option.
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.
Tata Steel Europe announced early this week that it has appointed Standard Chartered Bank as an additional adviser for the divestment of its entire holding in its British subsidiary Tata Steel UK. 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.
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On 18 April 2016, Tata Steel announced changes in leadership at Tata Steel UK. Bimlendra Jha, an Executive Committee member of Tata Steel Europe has been appointed as the Chief Executive Officer of Tata Steel UK. Jha is currently Executive Chairman of Tata Steel Europe's Long Products Europe business and has successfully led the divestment process that resulted in the signing of a sale and purchase agreement with Greybull Capital on 11 April 2016.
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.
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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