Tata Steel rose 0.92% to Rs 460.35 at 9:34 IST on BSE after the company said it has signed a memorandum of understanding with Klesch Group.
The company made the announcement on 15 October 2014, when stocks markets were closed on account of assembly elections in Maharashtra.
Meanwhile, the BSE Sensex was down 23.92 points, or 0.09%, to 26,325.51.
On BSE, so far 76,973 shares were traded in the counter, compared with an average volume of 7.83 lakh shares in the past one quarter.
The stock hit a high of Rs 468 and a low of Rs 460.10 so far during the day. The stock hit a 52-week high of Rs 578.60 on 9 June 2014. The stock hit a 52-week low of Rs 301 on 14 October 2013.
The large-cap company has an equity capital of Rs 971.21 crore. Face value per share is Rs 10.
The memorandum of understanding (MoU) is to undertake detailed due diligence and negotiations for the potential sale of its long products Europe business and associated distribution activities. The memorandum covers several UK-based assets including Tata Steel's Scunthorpe steelworks, mills in Teesside, Dalzell and Clydebridge in Scotland, an engineering workshop in Workington and a rail consultancy in York, as well as other operations in France and Germany.
About 6,500 people are employed at long products Europe and its distribution facilities. Tata Steel employs 30,500 people across Europe, including 17,500 in the UK. The European steel industry is emerging from one of the most challenging economic periods in its history. Tata Steel has invested 1.2 billion in its UK operations and trained 1,200 UK apprentices and graduates since acquiring Corus in 2007, Tata Steel said.
Karl Koehler, Chief Executive of Tata Steel's European operations, said: "We will now move into detailed due diligence and negotiations, though no assurance can be given about the outcome. We will regularly engage with our employees and other stakeholders throughout this process, and we will consult with the trade union representatives and works councils."
Explaining the context and rationale for this decision, Mr Koehler said: "We are making huge strides on our strategic journey to become a premium, customer-centred steel company thanks to investment in equipment, technology and customers, together with the substantial contributions from our employees.
"We've improved the competitiveness of Tata Steel's European operations, including long products Europe which now supplies more of the innovative steel rail, rod, plate, sections and special profile products demanded by customers.
"Accelerating the pace of innovation on advanced steel solutions, helping our customers succeed in their markets and creating a sustainable asset base requires significant capital and expertise.
"We have therefore decided to concentrate our resources mainly on our strip products activities, where we have greater cross-European production and technological synergies, he said.
"We want to build a sustainable business in the UK and further develop our mainland Europe business and we are committed to providing the necessary leadership and financial resources to achieve that," he added.
On a consolidated basis, Tata Steel's net profit fell 70.4% to Rs 337.33 crore on 11% growth in net sales to Rs 36143.27 crore in Q1 June 2014 over Q1 June 2013. The company said the net profit was affected by exceptional charges of Rs 262 crore in Q1 June 2014.
Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of nearly 30 million tonnes per annum. It is now the world's second-most geographically-diversified steel producer.
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