Shares of Tata Steel today rose by over 3 per cent to touch its multi-year high after the company concluded a new agreement under which its UK business stands separated from the 15-billion pound British Steel Pension Scheme (BSPS).
The stock gained 3.30 per cent to settle at Rs 683.15 on the BSE. During the day, it surged 4.64 per cent to Rs 692 -- its multi-year high.
On NSE, shares of the company went up by 3 per cent to close at Rs 682.90.
The company's market valuation climbed Rs 2,122.61 crore to Rs 66,348.61 crore.
As part of the arrangement, a payment of 550 million pound has been made to BSPS by Tata Steel UK and shares in Tata Steel UK, equivalent to 33 per cent stake, have been issued to the BSPS trustee, the steel giant said.
The BSPS has now been separated from Tata Steel UK and a number of affiliated companies, it added.
RAA is a mechanism that allows a financially troubled employer in the UK to detach itself from defined benefit scheme liabilities.
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