Tata Steel jumps after reports of British govt meeting potential buyers for UK operations

Tata Steel jumped 5.09% to Rs 328 at 15:30 IST on BSE after reports suggested that the British government opened talks with potential buyers for Tata Steel's UK operations.

Meanwhile, the S&P BSE Sensex was up 23.79 points or 0.1% at 24,907.38.

On BSE, so far 21.58 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 331.90 and a low of Rs 313.70 in intraday trade.

The British government has reportedly stepped up its efforts to find a buyer for the loss-making UK business of Tata Steel. Accused by opposition lawmakers of being "asleep at the wheel" when Tata Steel put its entire British operations up for sale last week, Prime Minister David Cameron also reportedly met ministers to discuss the options for a business which employs 15,000 people.

Tata Steel had announced on 30 March 2016 its decision of exploring all options for portfolio restructuring including the potential divestment of its UK subsidiary Tata Steel UK, in whole or in parts in the wake of deteriorating financial performance of the UK subsidiary in the last twelve months.

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. The combined Tata Steel group is largest steel producer in the world.

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