Tata Steel shares in focus as firm in talks to raise first ‘green’ loan

Shares of Tata Steel are in  focus today after a report said the steelmaker was engaged in talks to raise as much as $400 million. This could be the company’s first green loan if talks fructify.  

The metal stock rose 1.30% to Rs 109 in the current trading session against the previous close of Rs107.60 on BSE. Tata Steel stock has remained highly volatile in the last six months. Total 3.85 lakh shares of the firm changed hands amounting to a turnover of Rs 4.17 crore. Market cap of the Tata Group firm stood at Rs 1.33 lakh crore.   

In terms of technicals, the relative strength index (RSI) of Tata Steel stands at 54.8, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 1.3, indicating very high volatility in a year. Tata Steel shares are trading higher than the 5 day, 20 day, 50 day and 200 day moving averages but lower than 100 day moving averages. 

Tata Steel aims to become carbon neutral and plans to start producing “green” steel – or steel made without using fossil fuels – in 2030 at its plant in Ijmuiden, Netherlands. 

According to a Bloomberg report, the debt could have a tenure of about five years and the funds raised would be used for capital expenditure. 

In the third quarter of the last fiscal, Tata Steel reported a net loss of Rs 2,502 crore as against net profit of Rs 9,598 crore in the year-ago period on account of higher expenses. The company's revenue from operations fell 6% to Rs 57,084 crore in Q3FY23 as compared to Rs 60,783 crore in Q3FY22. 

ITC shares: Adani group investor GQG Partners' EM fund upped stake in FMCG major for 3rd straight quarter