Tata Steel Long Products stock rises 4% on takeover of Neelachal Ispat Nigam

Shares of Tata Steel Long Products rose over 4 per cent in early trade after the strategic disinvestment process of Neelachal Ispat Nigam Limited (NINL) was been completed. Tata Steel Long Products has taken over the company.

Tata Steel Long Products stock gained 4.12 per cent to Rs 596.1 against the previous close of Rs 572.50 on BSE. The stock opened with a gain of 3.69 per cent at Rs 593.60 on BSE. The share is trading higher than the 5-day and 20-day moving averages but lower than 50-day, 100-day and 200-day moving averages.

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However, the stock lost 19.45 per cent in 2022 but risen 39 per cent in a year. The market cap of the firm rose to Rs 2,662.48 crore on BSE. Total 1,570 shares of the firm changed hands amounting to a turnover of Rs 9.26 lakh.

Neelachal Ispat's strategic disinvestment transaction has been completed with the transfer of 93.71 per cent shares of the Joint Venture Partners - MMTC with 49.78 per cent shareholding, NMDC with 10.10 per cent, BHEL with 0.68 per cent, MECON with 0.68 per cent, OMC with 20.47 per cent and IPICOL with 12 per cent - to the strategic buyer Tata Steel Long Products Limited, a subsidiary of Tata Steel, stated the finance ministry.

The acquisition of NINL was critical for Tata Steel to build a dedicated long products complex as NINL has its own captive power plant to meet the internal power requirement and air separation unit for producing Oxygen, Nitrogen and Argon.