Tata Steel gained 0.6% to Rs 336.55 at 10:35 IST on BSE after Tata Steel UK announced the completion of the sale of its Long Products Europe business to Greybull Capital LLP.
The announcement was made after market hours yesterday, 31 May 2016.Meanwhile, the BSE Sensex was up 165.64 points, or 0.62%, to 26,829.37.
On BSE, so far 2.45 lakh shares were traded in the counter, compared with an average volume of 11.09 lakh shares in the past one quarter. The stock hit a high of Rs 338.05 and a low of Rs 334.60 so far during the day. The stock hit a 52-week high of Rs 364.15 on 21 April 2016. 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 31 May 2016, falling 4.59% compared with 4.14% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 34.26% as against Sensex's 15.94% rise.
The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.
Tata Steel said that during the last twelve months, the Long Products Europe business has implemented a transformation plan including a portfolio restructuring of assets, underpinned by committed support from employees and their trade unions. This has focused the business on higher-value markets supported by a more competitive cost base. The Long Products Europe business, which in the UK includes the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a rail mill in northern France, will trade under the name of British Steel. All together the business employs 4,800 people - 4,400 in the UK and 400 in France. The sale follows an accelerated process of negotiations between Tata Steel UK and Greybull Capital.
Bimlendra Jha, Executive Chairman of the Long Products Europe business and CEO of Tata Steel UK said that Tata Steel hopes that under Greybull ownership, the business will continue the momentum of the improvement program that has been initiated in the last 12 months.
Tata Steel reported consolidated net loss of Rs 3213.76 crore in Q4 March 2016 compared with consolidated net loss of Rs 5674.29 crore in Q4 March 2015. Tata Steel's total income fell 12.33% to Rs 29636.69 crore in Q4 March 2016 over Q4 March 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, with a steel capacity of more than 28 million tonnes and 80,000 employees across five continents.
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