Tata Steel shares in focus after Rs 2,603 crore stake acquisition in Singapore arm

Shares of Tata Steel are set to be in focus on Friday after the company announced a fresh equity stake acquisition worth Rs 2,603 crore in its Singapore-based subsidiary, T Steel Holdings Pte. Ltd.

The steelmaker disclosed the transaction after market hours on Thursday, stating it had acquired 191.08 crore ordinary equity shares of T Steel Holdings, valued at $300 million (Rs 2,603.16 crore).

This move follows an earlier investment of Rs 2,348 crore in the same subsidiary on August 28, 2024. Tata Steel clarified that T Steel Holdings will continue to remain a wholly owned subsidiary post-acquisition.


The company’s shares closed 1.6% higher on Thursday at Rs 138.00 on the BSE ahead of the announcement. Despite the recent uptick, Tata Steel’s stock has declined 2.13% over the past year and fallen 10.32% in the last six months. However, the stock has gained 4.85% over the past month, reflecting a short-term recovery.

Analyst sentiment remains cautiously optimistic. According to data from Trendlyne, the consensus average target price for Tata Steel stands at Rs 160 per share, implying a potential upside of 16% from current levels. Out of 30 analysts tracking the stock, 16 maintain a "buy" rating, eight recommend "hold," and six advise "sell."

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