Tata Steel shares gained over 6 per cent on Wednesday after it informed bourses that the company has put its entire UK business up for sale to stem heavy losses.
The share price of the company settled 6.75 per cent up at Rs 324.40. Sensex settled 1.76 per cent up at 25,338.58.
Deteriorating financial performance of its UK business has forced Tata Steel to sell its entire loss-making business in Britain. Reviewing the performance of its European operations, particularly those in the UK, Tata Steel Board noted with “deep concern the deteriorating financial performance of the UK subsidiary in the last twelve months”.
In a BSE filing, Tata Steel said, “Following the strategic view taken by the Tata Steel Board regarding the UK business, it has advised the board of its European holding company i.e. Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts.”
For the quarter ended December 2015, Tata Steel reported a consolidated net loss of Rs 2,127.23 against net profit of Rs 157.11 crore in the corresponding quarter a year ago.
In the past one year, the share price of Tata Steel slid 5.74 per cent to Rs 303.90 on March 29, whereas the BSE Sensex plunged 11 per cent during the same period.