Tata Metaliks defies broader market trend, up 9% in morning trade

MUMBAI: Defying the weak trend in the broader market, shares of Tata Metaliks surged by over 9 per cent on the bourses in morning trade today after the company announced plans to sell its 3 lakh tonnes per annum pig iron facility at Redi to Fomento Resources Group.

Tata Metaliks yesterday said it has inked a pact with Fomento Resources Group for sale of its 3 lakh tonnes per annum pig iron-making facility at Redi, in Maharashtra, for a consideration of Rs 180 crore.

Reacting to the news, shares of the company opened on a bullish note and surged by 9.22 per cent vis-a-vis their previous closing price to a high of Rs 90 on the Bombay Stock Exchange.

Similar movement was witnessed on the National Stock Exchange as well, where the stock -- after opening at Rs 87 -- rallied by 7.85 per cent against its last close to a high of Rs 88.60.

The stock was later trading at Rs 86.40 on the BSE, up 4.85 per cent, and at Rs 86.20 on the NSE, up 4.93 per cent, at 1104 hours.

The robustness in the counter was despite the fact that the broader market was trading in the negative zone.

The decision was taken by the Tata Metaliks board as part of a strategic review of its portfolio and is subject to shareholders' nod and regulatory approvals, the leading producer of pig iron said in a statement.

The proceeds from sale of the unit, with three mini-blast furnaces serving mainly the western and southern Indian markets, would be utilised for "reshaping the balance sheet and future strategic investments," it said.