Today, Tata Steel PP (Partially Paid) is the top loser on the BSE, hitting the 10% LC consecutively for the third straight day. The 10% LC is a new low at Rs.59.55.
The stock price slumped after the company stated that its standalone sales for the December quarter stood at 2.97 million tonnes, declining 9% (YoY).
The issued Press Release states that weak Europe will dent its Q3 performance due to lower production in the region. Production from its European plants fell 12.7% to 2.33 million tonnes for the third quarter. The company has stated that shutdowns and operational issues at IJmuiden plant in the Netherlands and Port Talbot in Wales hurt the company’s performance.
There is also unconfirmed news that Tata Steel will be selling its SE Asian assets – those under NatSteel to China’s HeSteel and is also looking at selling its Thailand operations.
Tata Steel PP got listed on the bousres on March 19. Tata Steel offered two types of rights issues — fully-paid up shares at Rs 510 per share and partly-paid up shares at Rs 615 per share, but investors would pay Rs 154 per share (25 per cent) upfront, with the balance due within a year. The partly-paid up shares were listed separately and will remain traded until the call is given for the balance amount.