Tata Steel Long Products’ share reaches upper circuit limit of 10%

Tata Steel Long Products’ share reaches upper circuit limit of 10%

Shares of Tata Steel Long Products have recently reached the upper circuit limit of 10% at ₹526.55 ($7.13) on the BSE. The company has recorded a 14% hike in the last 4 trading days, following the completion of the open market sales of the company’s equity shares by Tata Steel, its promoter company. This can be considered a step towards gaining a minimum public shareholding.

On 17th November 2020, the company’s stock reached a 52-week high of ₹533.50 ($7.22). As per the reported statement made by Tata Steel Long Products, its promoter company, Tata Steel has completed the open market sale of the high-end steel product manufacturer’s 451,000 equity shares during the period of 23rd November to 27th November 2020.

Following the sales of the equity shares, Tata Steel is currently holding a 74.91%, i.e. 33.78 million shares of the company’s equity share capital. The statement further added that the company is maintaining its compliance with the minimum public shareholding requirements.

Over the past 3 months, Tata Steel Long Products’ stock has rallied 76% as compared to its 14% gain in the stock market index, S&P BSE Sensex. In addition, the company has registered ₹59.06 crore ($8 million) as the consolidated net profit in the Q3 that ended in September. Formerly known as Tata Sponge Iron, it had posted ₹197 crore ($26.7 million) as the net loss in the same quarter a year ago.

Moreover, the company, which is engaged in manufacturing steel & allied products, had reported a Y-o-Y revenue growth rate of 52% from operations at ₹1,186 crore ($160.5 million) in Q2FY21. This number is against the ₹653 crore ($88.4 million) revenue recorded in the corresponding quarter of the last fiscal year. It also reported earnings before interest, taxes, depreciation, & amortization (EBITDA) of ₹199 crore ($26.9 million) during the quarter as compared to the loss of ₹30 crore ($4.1 million) in the same quarter of the previous year.

Source credit:

https://www.business-standard.com/article/markets/tata-steel-long-products-soars-10-as-tata-steel-completes-open-market-sale-120120100300_1.html