Tata Steel hits a 2-1/2-year high on merger rumours

Shares of Tata Steel rose 5.46 per cent to hit a 2-1/2 year high of 514.80 on Friday amid media reports suggesting a merger of Tata Steel's European business' with German industrial group Thyssenkrupp AG, a  move that could lead to potential annual savings of 400-600 million euros.

The scrip opened at Rs487.75 and touched a high and low of Rs514.8 and Rs485.5 respectively. The stock closed at 511.80, up 26.50 (5.46 per cent), on the Bombay Stock Exchange on Friday.

Tata Steel and Thyssenkrupp have been in talks over a deal since July 2016 to cut costs and reduce over capacity and came close to signing a memorandum of understanding (MoU). The talks that got stalled due to Brexit and management reshuffle at Tata have since gained momentum, reports quoting a German magazine said.

Neither Tata Steel nor Thyssenkrupp AG has commented on the report.

Tata Steel delivered 57 per cent returns in a period of one year and has outperformed the BSE Sensex and BSE Metal over the same time period.

About 17949009 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 47,133.09 crore.

The BSE group 'A' stock of face value Rs10 touched a 52-week high of Rs508.45 on 17 March 2017 and a 52-week low of Rs297.4 on 24 January 2016.

The promoters holding in the company stood at 31.35 per cent while institutions and non-institutional investors held 44.74 per cent and 23.91 per cent, respectively.