Tata Steel drops as UK initiates criminal investigations

NEW DELHI: Shares of Tata Steel fell half a per cent on Friday amid reports that the UK’s Serious Fraud Office has initiated a criminal investigation into Tata Steel's UK operations.

Police officers are investigating charges that Tata Steel's staff, in and around its Yorkshire's site, may have faked certificates on the composition of the products before its sale, a media report said.

The news has come at a time when Tata Steel was looking to exit UK operations.

Following the report, the stock declined 1.6 per cent to hit a low of Rs 318.80 on BSE. The stock eventually settled at Rs 322.25, down 0.52 per cent.

Examined documents have affected 500 customers, including BAE and Rolls-Royce, Telegraph said, citing a source.

On Thursday, there were reports that the company was on the verge of announcing the sale of its Scunthorpe unit to Greybull Capital and was also in advanced talks with Germany's ThyssenKrupp for a joint venture with its Netherland unit.

Tata Steel Limited is a large Indian multi-national steel manufacturing company having operations in 26 countries and commercial presence in over 50 countries. The Tata group firm is the world's second most geographically diversified steel producer.