Tata Steel surges after reports of receiving green nod for expansion project

Tata Steel surged 5.99% to Rs 283.15 at 13:30 IST on BSE on reports that the company has received final environment clearance for its Rs 1877-crore expansion project to be carried out at Jamshedpur Steel Works in Jharkhand.

Meanwhile, the S&P BSE Sensex was up 351 points or 1.45% at 24,568.81.

The spurt in stock price was accompanied by high volumes on the counter. On BSE, so far 15.7 lakh shares were traded in the counter as against average daily volume of 11.83 lakh shares in the past one quarter. The stock hit high of Rs 283.95 and low of Rs 271.70 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 2 March 2016, gaining 15.4% compared with 1.21% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 9.71% as against Sensex's 7.18% fall.

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

As per reports, according to the proposal, Tata Steel will expand crude steel production from 9.7 million tonnes per annum (MTPA) to 11 MTPA at Jamshedpur Steel Works. This augmentation project would be taken up within the existing plant of 717 hectares and no additional land is required, report added.

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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