Tata Steel stock rises 2% after subsidiary inks pact to buy NINL

Shares of Tata Steel rose over 2 per cent in early trade today after the government signed share purchase agreement with Tata Steel Long Products for selling Neelachal Ispat Nigam Ltd (NINL) for Rs 12,100 crore.

Tata Steel stock touched an intraday high of Rs 1,339, rising 2.39 per cent on the BSE. The stock has gained 6.17 per cent in the last two days. Tata Steel stock is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The share was the top Sensex gainer today.

Tata Steel shares have risen 82 per cent in the last one year and gained 19 per cent since the beginning of this year.

The market cap of the firm rose to Rs 1.61 lakh crore on the BSE.

A total of 7.09 lakh shares of the firm changed hands, amounting to a turnover of Rs 93.70 crore. The government approved the sale of loss-making NINL to Tata Steel Long Products Ltd (TSLPL) in January this year.

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Equity shareholding of MMTC (49.78%), NMDC (10.10%), MECON (0.68%), BHEL (0.68%), IPICOL (12.00%) and OMC (20.47%) will be offloaded in NINL.

Neelachal Ispat Nigam Ltd is a joint venture of four CPSEs - MMTC, NMDC, BHEL, MECON and two state PSEs - OMC and IPICOL - which has an integrated steel plant with a capacity of 1.1 MT, at Kalinganagar, Odisha.

Meanwhile, MMTC said on Thursday it has executed a share purchase agreement to sell its entire stake in Neelachal Ispat Nigam Ltd (NINL) to Tata Steel Long Products Ltd as part of the disinvestment drive of the government.

"...in continuation of our earlier disclosures regarding disinvestment of Neelachal Ispat Nigam Ltd, we wish to inform you that the company has executed the share purchase agreement and escrow agreement for the sale of its entire equity holding of the company in NINL to Tata Steel Long Products Limited, the successful bidder selected through the two-stage auction procedure, involving a competitive bidding process, run under the aegis of Department of Investment and Public Asset Management (DIPAM), MMTC said.