Tata Steel slips on selling Cogent Power to JFE Shoji

Tata Steel fell 3.73% to Rs 332.1 at 15:14 IST on BSE after Tata Steel Europe announced outcome of sales process for non-core businesses.

Sep 03, 2019 09:09 IST capital market

Meanwhile, the S&P BSE Sensex was down 725 points or 1.94% to 36,608.17.

Tata Steel Europe had announced in May 2018 the potential sale of five non-core businesses, enabling it to strengthen its focus on its strategic markets.

One of the five non-core businesses was Cogent Electrical Steels which comprised of Orb Electrical Steels, in Newport, South Wales, Cogent Power Inc, in Burlington, Canada and Surahammars Bruks AB, in Surahammar, Sweden.

Tata Steel said that it has signed a sales and purchase agreement for Cogent Power Inc (CPI), with Japanese steel giant JFE Shoji Trade Corporation. CPI manufactures cores for electrical distribution transformers and employs nearly 300 people.

Furthermore, the company said that it has decided to retain Surahammars Bruks AB, which makes advanced steels for electric vehicles. However, despite exploring all options, the company has been unable to find a way forward for Orb Electrical Steels and has, hence, proposed to close the site, with the potential loss of up to 380 jobs.

On the BSE, 5.05 lakh shares were traded in the Tata Steel counter so far compared with average daily volumes of 9.97 lakh shares in the past two weeks. The stock hit a high of Rs 341.6 and a low of Rs 330.65 so far during the day.

The stock hit a 52-week high of Rs 646.7 on 21 Sep 2018. The stock hit a 52-week low of Rs 322.45 on 26 Aug 2019.

On a consolidated basis, the steelmakers net profit declined -65.9% to 704.46 crore on a 0.8% rise in the net sales to Rs 35382.16 in Q1 June 2019 over Q1 June 2018.

Tata Steel is the largest steelmaker in the UK employing more than 8,000 people, manufacturing advanced products for the likes of the automotive, construction and engineering industries.

Powered by Capital Market - Live News

Related Story