Tata Steel Long Products soars 10% as Tata Steel completes open market sale

For the July-September quarter, the company had reported a consolidated net profit of Rs 59.06 crore.

Shares of Tata Steel Long Products were locked in the upper circuit limit of 10 per cent at Rs 526.55 on the BSE on Tuesday, thus surging 14 per cent in the past four trading days after Tata Steel, the promoter company, completed its open market sale of equity shares of the company, as a step towards achieving minimum public shareholding. The stock had hit a 52-week high of Rs 533.50 on November 17, 2020.

“Tata Steel, the promoter company, has completed the open market sale of 451,000  equity shares of Tata Steel Long Products, during the period November 23, 2020, through November 27, 2020,” Tata Steel Long Products said in an exchange filing.

Post sales, Tata Steel now holds 74.91 per cent (33.78 million equity shares) of the equity share capital of the company and the Company is in compliance with the minimum public shareholding requirements, it said.

Meanwhile, in the past three months, the stock of Tata Steel Long Products has rallied 76 per cent, as compared to a 14 per cent gain in the S&P BSE Sensex. The company reported a consolidated net profit of Rs 59.06 crore in the July-September quarter (Q2FY21). The company, formerly known as Tata Sponge Iron, had posted a net loss of Rs 197 crore in the year-ago quarter.

The company, engaged in manufacturing steel and allied products, reported a 52 per cent year-on-year (YoY) growth in revenue from operations at Rs 1,186 crore in Q2FY21 as against Rs 653 crore in the corresponding quarter of the previous fiscal. It reported EBITDA (earnings before interest, taxes, depreciation, and amortisation) of Rs 199 crore during the quarter, compared with a loss of Rs 30 crore in the previous-year quarter.