Tata Steel rose 0.85% to Rs 321.30 at 9:41 IST on BSE after the company said it entered into discussions with strategic players in the steel industry for its European businesses.
The announcement was made after trading hours on Friday, 8 July 2016.Meanwhile, the BSE Sensex was up 450.31 points, or 1.66%, to 27,577.21.
On BSE, so far 1.31 lakh shares were traded in the counter, compared with average daily volume of 9.35 lakh shares in the past one quarter. The stock hit a high of Rs 325 and a low of Rs 320.50 so far during the day. The stock hit a 52-week high of Rs 364.15 on 21 April 2016. The stock hit a 52-week low of Rs 200 on 29 September 2015. The stock had underperformed the market over the past 30 days till 8 July 2016, sliding 6.86% compared with 1.36% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 1.13% as against Sensex's 9.94% rise.
The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.
Tata Steel announced that it has entered into discussions with strategic players in the steel industry, including Thyssenkrupp AG for a strategic collaboration for its European businesses. The decision has been taken as an alternative to the ongoing process for the divestment of loss making Tata Steel UK. Tata Steel said that the discussions for strategic collaboration are currently at preliminary stage and there is no certainty of a transaction as the outcome depends on consultation and negotiations with various stakeholders. Tata Steel also said it would begin separate processes for the sale of its South Yorkshire specialty steels business and the Hartlepool pipe mills, excluding the 20-inch tube mill, in the UK. Tata Steel has already received interest from several bidders for these two businesses and the formal process for the sale of the businesses will commence shortly.
Tata Steel reported consolidated net loss of Rs 3213.76 crore in Q4 March 2016, higher than net loss of Rs 5674.29 crore in Q4 March 2015. Tata Steel's total income fell 12.34% to Rs 29636.69 crore in Q4 March 2016 over Q4 March 2015.
Tata Steel is Europe's second largest steel producer, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe. The combined Tata Steel group is one of the world's largest steel producers, with a steel capacity of more than 28 million tonnes and 80,000 employees across five continents.
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