Tata Steel gains after selling land parcel in Mumbai

Tata Steel rose 1.32% to Rs 371.55 at 9:19 IST on BSE after the company said it sold its 25-acre land parcel in Borivali, Mumbai for Rs 1,155 crore to Oberoi Realty through e-auction.

The company made the announcement after market hours on Tuesday, 25 March 2014.

Meanwhile, the BSE Sensex was up 96.57 points, or 0.44%, to 22,151.78.

On BSE, so far 50,000 shares were traded in the counter, compared with an average volume of 7.94 lakh shares in the past one quarter.

The stock hit a high of Rs 372.50 and a low of Rs 370.10 so far during the day. The stock hit a 52-week high of Rs 435.40 on 2 January 2014. The stock hit a 52-week low of Rs 195.40 on 7 August 2013.

 

The stock had underperformed the market over the past one month till 25 March 2014, rising 1.61% compared with the Sensex's 5.77% rise. The scrip had also underperformed the market in past one quarter, falling 12.37% as against Sensex's 4.86% rise.

The large-cap company has an equity capital of Rs 971.21 crore. Face value per share is Rs 10.

Tata Steel had launched the bid-cum-auction process for the sale of its land parcel in Borivali on 18 December 2013 by public advertisements in national dailies. The site measuring roughly 25 acres is located at the junction of Western Express Highway and Dattapada road in Borivali (East), Mumbai and is abutting both these roads. The neighborhood predominantly comprises medium to high-end residential developments, the company said in a statement.

Tata Steel said it completed the e-auction process on Monday, 24 March 2014, for the sale of its above land with the participation of several well-known developers. The committee of independent directors appointed for the oversight and governance of the sale process by the Tata Steel board on Tuesday, 25 March 2014, declared Oberoi Realty as the highest bidder of the auction on the basis of their final bid of Rs 1155 crore, after several rounds of bidding. As per the laid down process, the sale will be concluded after all requisite permissions are obtained, the company said.

Tata Steel reported a consolidated net profit of Rs 503.24 crore in Q3 December 2013 as compared to a net loss of Rs 763.06 crore in Q3 December 2012. Total income rose 14.3% to Rs 36754.38 crore in Q3 December 2013 over Q3 December 2012.

Tata Steel is among the top-ten global steel companies with an annual crude steel capacity of over 29 million tonnes per annum (mtpa). It is the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries.

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