Shares of India's largest steel manufacturing company Tata Steel jumped over 2 per cent to hit an intraday high of Rs 1,346 on BSE after the company announced that it has completed the acquisition of the entire stake held by state-owned SAIL in S&T Mining.
The company informed that the acquisition is part of Tata Steel Group's portfolio restructuring and simplification strategy.
The stock opened a tad higher at Rs 1,338.80 against the previous close of Rs 1,320.55. With a market capitalisation of more than Rs 1,63,000 crore, the shares stand higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
Tata Steel had recently said that it has executed a share purchase pact with Steel Authority of India Limited (SAIL) for acquiring the latter’s entire 50 per cent stake in S&T Mining Co Ltd.
On completion of the acquisition, S&T Mining has become a wholly-owned subsidiary of Tata Steel. “…the company has yesterday, i.e. April 11, 2022, completed the acquisition of the entire equity stake held by SAIL in S&T Mining,” Tata Steel said in a filing to BSE.
S&T Mining, a 50:50 joint venture between Tata Steel and SAIL, was incorporated for the purpose of acquiring coal blocks, carrying out exploration, obtaining regulatory approvals and licences, development of mine, extraction and mining of coal from the identified blocks.
Recently, Tata Steel Mining Limited, an unlisted wholly-owned subsidiary of Tata Steel Limited, has successfully completed the acquisition of a controlling stake of 90 per cent in Rohit Ferro-Tech Limited in accordance with the approved Resolution Plan under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code 2016.
Tata Steel achieved the highest ever annual crude steel production of 19 million tons, with a growth of 13 per cent on a year-on-year (YoY) basis. During Q4 FY22, crude steel production increased by 2 per cent on a quarter-on-quarter (QoQ) basis and stood at 4.90 million tons.
(With inputs from PTI)