Tata Steel gains on segregating UK biz from pension scheme

NEW DELHI: Shares of Tata Steel advanced over 4 per cent on Monday after the company signed an agreement on segregating the company’s UK business from its pension scheme.

Following the development, the stock gained 4.21 per cent to close at Rs 621.25 on BSE. It opened at Rs 609 and touched an intraday high and low of Rs 623.35 and Rs 606.60 respectively.

The move is said to potentially free up the company to pursue strategic options for the unit, including a possible merger with Thyssenkrupp AG of Germany.

In an official communication on Friday evening, Tata Steel said it had signed documentation for a Regulated Apportionment Arrangement (RAA) with the BSPS trustee.

Promoters held 31.35 per cent stake in the company as of June 2017.

For the quarter ended March 31, 2017, Tata Steel reported total revenue at 14,421.72 crore and net profit stood at 506.45 crore.

The scrip touched its fresh 52-week high of Rs 624.95 on August 8, 2017 and its 52-week low of Rs 355.40 on September 19, 2016.