Tata Steel rose 3.77% to Rs 350 at 14:39 IST on BSE after the company failed to reach a deal with UK unions about its proposal to change the British pension scheme.
The company issued the clarification yesterday, 16 April 2015.
Meanwhile, the BSE Sensex was down 79.72 points, or 0.28%, to 28,586.32.
On BSE, so far 8.91 lakh shares were traded in the counter, compared with an average volume of 7.86 lakh shares in the past one quarter.
The stock hit a high of Rs 352 and a low of Rs 336 so far during the day. The stock hit a 52-week high of Rs 578.60 on 9 June 2014. The stock hit a 52-week low of Rs 311.30 on 27 March 2015.
The stock had outperformed the market over the past one month till 16 April 2015, rising 3.40% compared with 0.80% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 11.91% as against Sensex's 1.93% rise.
The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.
With respect to recent news item captioned "Tata Steel strike action in UK", Tata Steel clarified that Tata Steel UK, the company's subsidiary, has been in discussions with the UK trade unions about the future of defined benefit pension provision under the British Steel Pension Scheme (BSPS). As part of the discussions and negotiations, the subsidiary company proposed restructuring of the Scheme benefits. The negotiations with the UK unions have concluded without support from the trade unions on proposed modifications to the Scheme. The company is currently engaged in an consultative process with the BSPS members, Tata Steel clarified in a statement on NSE.
On Monday, 13 April 2015, unions of Tata Steel UK, a subsidiary of the Indian steel major, had called for an industrial action ballot against the company's proposal to close the BSPS. The ballot will be starting from 6 May 2015 and the unions had said that it is expected to conclude by 29 May 2015.
An industrial action ballot or vote is sought by unions to know the majority view of its members about participating in the action - strike, lock-out and action short of a strike.
Tata Steel plans to keep in abeyance the existing pension scheme, which is likely to hit 17,500 existing workers and over 90,000 pensioners. According to media reports, the suspension will help Tata save 1 billion pounds.
Tata Steel consolidated net profit slumped 68.8% to Rs 157.11 crore on 8.5% decline in net sales to Rs 33323.84 crore in Q3 December 2014 over Q3 December 2013.
Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of nearly 30 million tonnes per annum.
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