Tata Steel shares in news today, here’s why

Shares of Tata Steel are in news today after the firm said it has raised stake in Indian Steel & Wire Products Limited. Tata Steel shares ended 2.44% lower at Rs 162 on Thursday. Tata Steel stock opened higher at Rs 166.15 in the previous session against the close of Rs 166.05 on BSE. Market cap of the firm fell to Rs 2.02 lakh crore. Total 19.57 lakh shares changed hands amounting to a turnover of Rs 32.11 crore on BSE.

 “Tata Steel acquired 18,73,493 equity shares of Rs 10 each at an issue price of Rs 427.01 per share (including a premium of Rs 417.01 per share), of The Indian Steel & Wire Products Limited (‘ISWP’), a subsidiary company, on preferential basis, for an aggregate amount of Rs 80 crore (hereinafter referred to as the ‘Transaction’). Upon completion of the Transaction, the aggregate equity stake of the company has increased to 98.61%,” said Tata Steel.

Indian Steel & Wire Products is engaged in the manufacturing of metal and metal products.

These funds shall be utilised by Indian Steel & Wire Products for meeting the expenditure requirement towards its Combi-Mill project.

Indian Steel & Wire Products is a subsidiary of Tata Steel. It was incorporated on December 2, 1935, and is engaged in the business of manufacture of wire rods, TMT rebars, wires and wire products as an external processing agent of TSL and manufacturing and direct marketing of welding products, nails, rolls and castings.