Tata Steel rallies 2% on sale of 25-acre land parcel

NEW DELHI: Tata Steel Ltd rallied over 2 per cent in trade on Tuesday, after ET reported that steel major’s 25-acre land parcel in Borivali suburb of Mumbai has fetched the highest bid of Rs1,155 crore in an e-auction concluded late Monday.

At 10:00 a.m.; Tata Steel was trading 2.1 per cent higher at Rs 370.85. It hit a low of Rs 361.90 and a high of Rs 371 in trade today.

Realty majors Lodha Group, Oberoi Realty, Kalpataru Properties and Tata Group Company Tata Housing Development Co were in the race to acquire the property, ET reported. It is believed that Tata Housing has offered the highest bid. However, this could not be confirmed independently.

According to an ET report, in an e-auction concluded on late Monday, the bids had started at Rs 750 crore for the prime land parcel. The plot located near the western express highway and around 1 km from Borivali railway station earlier housed Tata SSL's steel wires manufacturing facility.

The manufacturing unit was shut down in 2009 after the operations were shifted to Tarapur in 2008.

In terms of value, the Tata Steel land transaction is among the largest one in recent years. In 2012, realty major Lodha Group had acquired a 17.5-acre land parcel at Lower Parel from DLF for Rs2,725 crore.