Stocks

Tata Steel gains 5%; M-cap rises by Rs 1,850 cr

PTI New Delhi | Updated on January 16, 2018 Published on December 08, 2016

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Shares of Tata Steel ended higher by nearly 5 per cent after the company announced investment plans for its UK unit and an agreement with workers' union over pension plan.

The stock closed at Rs 431.55, up 4.62 per cent on the BSE.

During the day, the stock had risen by 4.94 per cent to touch an intra-day high of Rs 432.90. The stock saw a spurt in volumes by more than 2 times.

Following the uptick in the counter, the market capitalisation of the company improved by Rs 1,850 crore to Rs 41,912.80 crore.

On the NSE, the stock settled at Rs 432.05, up 4.89 per cent. During the day, it had risen by 5.06 per cent to an intra-day high of Rs 432.75.

Tata Steel had yesterday pledged to stay in Britain with a 10-year commitment to a one-billion-pound investment plan as part of crucial talks with steelworkers’ unions to save thousands of jobs in the UK.

Tata Steel had offered a number of guarantees to its staff at Port Talbot steelworks in south Wales — the UK’s largest steel plant — including a minimum five-year guarantee to keep both furnaces operational at the site.

Tatas will next week start consultation with its employees on a proposal to close the British Steel Pension Scheme, which has liabilities of over 15 billion pound, and offer employees a “competitive defined contribution scheme” in its place.

The future of its UK business will remain contingent on a solution being achieved to the pension scheme.

The company has termed the agreement between Tata Steel UK and the unions as an important step forward in the journey to develop a “sustainable future for our UK steel business“.

Published on December 08, 2016
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