Tata Steel shares jump over 3%; mcap rises by Rs 2,123 cr

Shares of Tata Steel today rose

by over 3 per cent to touch its multi-year high after the

company concluded a new agreement under which its UK business

stands separated from the 15-billion pound British Steel

Pension Scheme (BSPS).

The stock gained 3.30 per cent to settle at Rs 683.15 on

the BSE. During the day, it surged 4.64 per cent to Rs 692 --

its multi-year high.

On NSE, shares of the company went up by 3 per cent to

close at Rs 682.90.

The company's market valuation climbed Rs 2,122.61 crore

to Rs 66,348.61 crore.

In terms of equity volume, 6.20 lakh shares of the

company were traded on BSE and over one crore shares changed

hands on NSE during the day.

"Tata Steel UK has received confirmation from the

pensions regulator that it has approved a regulated

apportionment arrangement (RAA) in respect of BSPS," Tata

Steel said in a statement yesterday.

As part of the arrangement, a payment of 550 million

pound has been made to BSPS by Tata Steel UK and shares in

Tata Steel UK, equivalent to 33 per cent stake, have been

issued to the BSPS trustee, the steel giant said.

The BSPS has now been separated from Tata Steel UK and a

number of affiliated companies, it added.

RAA is a mechanism that allows a financially troubled

employer in the UK to detach itself from defined benefit

scheme liabilities.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)