 "Somani Group eyes to buy stake in German specialty chemicals maker SKW")
Tata Steel rose 0.57% to Rs 406.95 at 9:24 IST on BSE with the stock shrugging off the company's ratings downgrade by Brickwork Ratings.
The announcement was made yesterday, 31 October 2016. Meanwhile, the S&P BSE Sensex was down 10.64 points or 0.04% at 27,919.57.
On BSE, so far 41,000 shares were traded in the counter as against average daily volume of 9.32 lakh shares in the past one quarter. The stock hit a high of Rs 408.40 and a low of Rs 404 so far during the day. The stock had hit a 52-week high of Rs 431.65 on 20 October 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 30 October 2016, advancing 8.08% compared with 0.23% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 14.07% as against Sensex's 0.43% fall.
The large-cap company has equity capital of Rs 971.22 crore. Face value per share is Rs 10.
Tata Steel said that ratings agency Brickwork Ratings downgraded the company's credit rating to BWR AA from BWR AA+, with negative outlook for the unsecured non-convertible debenture (NCD) issues of Rs 4000 crore. The ratings agency also downgraded ratings to BWR AA- from BWR AA for the company's unsecured subordinated perpetual debt issues of Rs 2500 crore, with negative outlook.
The sudden change of guard at the holding company/group level has not only heightened the management risk for Tata Steel, but also has exposed it to uncertainty over continuity of critical decisions on cost cutting and deleveraging the balance sheet concerning the unprofitable UK operations and restructuring its European business, the ratings agency said. Unless the company takes appropriate measures in this regard, it may lead to a further deterioration in financial profile of the company, as also a rating action, the agency added.
On a consolidated basis, Tata Steel reported net loss of Rs 3183.07 crore in Q1 June 2016 as against net loss of Rs 316.91 crore in Q1 June 2015. Net sales declined 5.7% to Rs 25155.98 crore in Q1 June 2016 over Q1 June 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
