Tata Steel shares pare gains after rising 1% on a deal with trade unions

NEW DELHI: Shares of Tata Steel traded flat on Friday despite rising over 1 per cent in the initial trade after the company said it had reached a deal with the agitating trade unions of Tata Steel UK plant.

The company has started a process to close the expensive British pension scheme and replace it with a defined contribution scheme, which will lower uncertainty in payouts. The new scheme will have maximum contributions of 10 per cent from the company and 6 per cent from employees.

In addition, it has agreed to invest 1 billion pounds in the loss-making Port Talbot steel plant over the next 10 years, and said it would also avoid compulsory job redundancies.


The stock rose about one per cent to hit a high of Rs 435.40 in trade on BSE, only to retreat later. At 10.52 am, the stock was trading 0.08 per cent down at Rs 431.20.

Tata Steel said the Port Talbot plant would continue the existing blast furnace configuration until 2021 and that future investments will continue based on financial performance of next five years.