Tata Steel extends intraday gains

capital market | Mumbai |

Tata Steel surged 6.64% to Rs 357.25 at 14:44 IST on BSE on media reports that senior officials at the company's Port Talbot steelworks have been briefed about a potential management buyout plan.

Meanwhile, the S&P BSE Sensex was up 17.95 points or 0.07% at 25,834.31.

On BSE, so far 20.14 lakh shares were traded in the counter as against average daily volume of 12.42 lakh shares in the past one quarter. The stock hit a high of Rs 358.25 and a low of Rs 337 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 stock had outperformed the market over the past one month till 18 April 2016, rising 10.93% compared with 3.46% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 41.8% as against Sensex's 6.73% rise.

The large-cap company has equity capital of Rs 971.22 crore. Face value per share is Rs 10.

Media reports suggested that senior officials at Tata Steel's Port Talbot's steelworks have been briefed about the possible management buyout of the company's operations in the UK. According to media reports, Stuart Wilkie, Managing Director of Tata Strip Products UK, is heading up a buying team alongside other staff members. Reports suggested that Port Talbot is Tata Steel's biggest UK plant with about 4,000 workers.

Meanwhile, media reports suggested that a foreign brokerage has initiated coverage on Indian steel sector and assigned outperform rating on Tata Steel along with two other stocks. The brokerage reportedly cited factors such as bottoming out of inventory cycle, weakness in dollar and China demand stimulus among positives for the steel sector.

Tata Steel after market hours Monday, 18 April 2016, 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.

Meanwhile, Tata Steel Europe 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.

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.

Powered by Capital Market - Live News

 

Advertisements

  • Get your free IIFL Demat & Trading A/c now...Click here
  • Get IIFL express personal loan disbursal in just 8* hours...Know More
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.