Tata Steel was up 2.22% to Rs 416.15 at 9:19 IST on BSE after Tata Steel UK announced the signing of a letter of intent with Liberty House Group to enter into exclusive negotiations for the potential sale of its Speciality Steels business.
The announcement was made after market hours yesterday, 28 November 2016.Meanwhile, the S&P BSE Sensex was up 113.68 points or 0.43% at 26,463.85.
On BSE, so far 87,000 shares were traded in the counter as against average daily volume of 9.01 lakh shares in the past one quarter. The stock hit a high of Rs 417.35 and a low of Rs 414 so far during the day. The stock had hit a 52-week high of Rs 440.90 on 11 November 2016. The stock had hit a 52-week low of Rs 211.30 on 12 February 2016. The stock had outperformed the market over the past one month till 28 November 2016, gaining 0.66% compared with the Sensex's 5.7% fall. The scrip had also outperformed the market in past one quarter, advancing 10.07% as against the Sensex's 5.15% fall.
The large-cap company has equity capital of Rs 971.22 crore. Face value per share is Rs 10.
Tata Steel UK announced the signing of a letter of intent with Liberty House Group to enter into exclusive negotiations for the potential sale of its Speciality Steels business for an enterprise value of 100 million subject to due diligence and corporate approvals. The letter of intent covers several South Yorkshire-based assets including the Rotherham electric arc steelworks, the steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi'an, China. Speciality Steels employs about 1,700 people making steels for the aerospace, automotive and the oil & gas industries.
Tata Steel UK has invested 1.5 billion of capital over the last nine years. The company's boards consider the technical feasibility and economic returns of investments when taking decisions, as well as their affordability. The company is pursuing a transformation plan to create a sustainable future for its UK strip products business. The success of this plan is likely to influence decisions on future investments. In the current year, the company is pursuing 85 million worth of capital investments covering a range of sustenance and improvement schemes.
On a consolidated basis, Tata Steel reported net loss of Rs 49.38 crore in Q2 September 2016, compared with net profit of Rs 5609.43 crore in Q2 September 2015. Net sales rose 0.1% to Rs 26291.86 crore in Q2 September 2016 over Q2 September 2015.
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.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
