Tata Steel hits 52-week high

Tata Steel rose 3.61% to Rs 685.15 at 12:54 IST on BSE after the company said that Tata Steel UK has completed settlement with UK pension fund regulator.

The announcement was made after market hours yesterday, 11 September 2017.

Meanwhile, the S&P BSE Sensex was up 164.49 points or 0.52% at 32,046.65.

On the BSE, 4.71 lakh shares were traded on the counter so far as against the average daily volumes of 5.25 lakh shares in the past one quarter. The stock had hit a high of Rs 692 so far during the day, which is a 52-week high. The stock hit a low of Rs 674 so far during the day. The stock had hit a 52-week low of Rs 355.40 on 19 September 2016.

The stock had outperformed the market over the past one month till 11 September 2017, advancing 10.93% compared with the Sensex's 2.14% rise. The stock had also outperformed the market over the past one quarter, gaining 30.61% as against the Sensex's 1.98% rise. The scrip had also outperformed the market over the past one year, advancing 67.63% as against the Sensex's 10.71% rise.

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

Tata Steel said that Tata Steel UK has received confirmation from The Pensions Regulator that it has approved a Regulated Apportionment Arrangement (RAA) in respect of the British Steel Pension Scheme (BSPS). The BSPS has now been separated from Tata Steel UK and a number of affiliated companies. As part of the RAA, a payment of 550 million pounds from Tata Steel UK has been made to the BSPS and shares in Tata Steel UK, equivalent to a 33% economic equity stake in the company, have been issued to the BSPS Trustee under the terms of a shareholders' agreement.

Tata Steel UK has also agreed to sponsor a proposed new pension scheme, subject to certain qualifying conditions being met. Now the RAA has completed, all members of the BSPS will be invited to transfer to the new scheme. If the qualifying conditions are met, members who choose to will transfer to the new scheme. The new scheme would have lower future annual increases for pensioners and deferred members than the British Steel Pension Scheme, giving it an improved funding position which would pose significantly less risk for Tata Steel UK. The BSPS Trustee will, in due course, communicate with all scheme members about the separation and the proposed new pension scheme.

On a consolidated basis, Tata Steel reported net profit of Rs 921.09 crore in Q1 June 2017, compared with net loss of Rs 3183.07 crore in Q1 June 2016. Net sales rose 18.9% to Rs 29386.76 crore in Q1 June 2017 over Q1 June 2016.

Tata Steel is the world's second-most geographically-diversified steel producer, with operations in 26 countries and commercial presence in over 50 countries.

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