Tata Steel gains after divesting stake in Sri Lankan unit

1 April 2015

Tata Steel rose 0.36% to Rs 318 at 9:16 IST on BSE after the company said it divested its entire stake in wholly-owned Sri Lankan subsidiary for around Rs 20.40 crore in an all cash deal.

The announcement was made after trading hours yesterday, 31 March 2015.

Meanwhile, the BSE Sensex was up 14.68 points, or 0.05%, to 27,972.17.

On BSE, so far 11,000 shares were traded in the counter, compared with an average volume of 7.99 lakh shares in the past one quarter.

The stock hit a high of Rs 318.40 and a low of Rs 316.10 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 311.30 on 27 March 2015.

The stock had underperformed the market over the past one month till 31 March 2015, falling 10.91% compared with 4.78% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 20.66% as against Sensex's 1.67% 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 divested its entire stake in Lanka Special Steels (LSSL) to E.B. Creasy & Company (EBCC) for a total consideration of LKR 433 million (around Rs 20.40 crore) in an all cash deal. LSSL was a wholly owned subsidiary of Tata Steel incorporated in Sri Lanka. It is engaged in the business of manufacturing and supplying hot dip galvanized wire and nail wire with an installed capacity of 14,400 metric tonnes per annum. It had an annual turnover of LKR 1,569 million (Rs 74 crore) in fiscal year ended March 2014.

Tata Steel consolidated net profit slumped 68.78% to Rs 157 crore on 8.44% decline in turnover to Rs 33633 crore in Q3 December 2014 over Q3 December 2013.

Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of nearly 30 million tonnes per annum.