Tata Steel shares drop nearly 4% after block deal of 2.09 million shares

Shares of Tata Steel dropped nearly 4 per cent on Wednesday after a large volume of the company's shares changed hands, according to Bloomberg. 

Tata Steel's shares fell as much as 3.82 per cent during the day to ₹125.3 per share. The stock pared gains to trade 2.58 per cent lower at ₹126.9 apiece, compared to a 0.66 per cent advance in Nifty 50 as of 11:19 AM. 

 

Following a day of gains, the shares resumed their decline on Wednesday. The stock has fallen 8 per cent this year, compared to a 5.3 per cent fall in the benchmark Nifty 50. Tata Steel has a total market capitalisation of ₹1.59 trillion.

 

Bloomberg reported that about 2.09 million shares of the Tata Group company traded in a block as soon as the markets opened for trading on Wednesday. The average price per share traded was not available. 

 

The large trade comes a day after the steel maker said its India production volume in Q4FY25 stood at 5.51 million tonnes, up marginally from 5.40 million tonnes at the end of Q4FY24. On a sequential basis, however, the domestic production volume fell from the 5.69 million tonnes seen in Q3FY25.

 

"For the whole financial year, Tata Steel India crude steel production increased by 5 per cent Y-o-Y to around 21.8 million tonne, upon commissioning of India's largest blast furnace at Kalinganagar and higher steel production at Neelachal Ispat Nigam Limited. In Q4FY25, crude steel production was 5.51 million tonne and lower on Q-o-Q basis due to the relining underway at 'G' blast furnace in Jamshedpur," the Tata Group company said in its stock exchange filing. 

 

Its production volume from the Netherlands plant increased to 1.63 MT year-on-year (Y-o-Y) from 1.48 MT, but fell from 1.76 MT quarter-on-quarter (Q-o-Q). Production from the UK plant was nil on the back of the closure of its two blast furnaces at the Port Talbot steelworks in South Wales. Production volume from the Thailand plant, meanwhile, was flat at 0.31 MT Y-o-Y, and up from 0.26 per cent Q-o-Q. 

 

Segment-wise, Automotive & Special Products (A&SP) vertical deliveries were broadly similar Y-o-Y at 3.1 million tonne. The volumes increased by 10 per cent Q-o-Q and Tata Steel became the first Indian mill to localise high strength grade hot rolled CP780 for automotive applications, it said.