Tata Steel gains after subsidiary enters into pact with Govt of Quebec

Tata Steel rose 2.52% to Rs 237.55 at 10:30 IST on BSE after the company said that its group company has signed an in-principle agreement with the Government of Quebec for a direct shipping ore project in the North Shore region.

The announcement was made after market hours yesterday, 20 January 2016.

Meanwhile, the S&P BSE Sensex was up 82.96 points or 0.34% at 24,145.

On BSE, so far 2.95 lakh shares were traded in the counter as against average daily volume of 10.23 lakh shares in the past one quarter. The stock hit a high of Rs 239.25 and a low of Rs 233.65 so far during the day. The stock had hit a 52-week high of Rs 411.40 on 23 January 2015. The stock had hit a 52-week low of Rs 200 on 29 September 2015. The stock had underperformed the market over the past one month till 20 January 2016, sliding 9.26% compared with Sensex's 5.71% fall. The scrip had however, outperformed the market in past one quarter, declining 3.78% as against Sensex's 11.88% fall.

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

Tata Steel's group company TS Global Minerals has signed an in-principle agreement with the Government of Quebec. This undertaking should lead to a decision, before 31 March 2016, with respect to a government participation in the direct shipping ore project (DSO Project) in Schefferville area, in the North Shore region. Parties also agreed to cooperate in creating favorable conditions in the transit activities of iron ore from Arnaud Junction to the multi-user dock of the Port of Sept-iles.

Tata Steel through its subsidiary Tata Steel Minerals Canada is completing a direct shipping ore project in Schefferville, in which the company has invested more than 1 billion Canadian dollar. The company plans to develop its DSO deposits in Quebec with the Government of Quebec.

Tata Steel's consolidated net profit rose 21.87% to Rs 1528.71 crore on 18.1% fall in net sales to Rs 29068.54 crore in Q2 September 2015 over Q2 September 2014.

Tata Steel is Europe's second largest steel producer. The combined Tata Steel group is largest steel producer in the world.

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