What is Tata Steel’s Debt Resolution Plan? – Why Tata Steel Dropped to 3.15 %
On Thursday, Tata Steel shares reacted negatively. The reason was the news that the steel major will take on board employees of Bhushan Steel as part of its debt resolution plan.
The Managing Director of Tata Steel, TV Narendran has stated that the company will take on board all 5,000 employees as part of the resolution plan that it has submitted.
The Tata Steel’s stock dropped as much as 3.15 per cent on Thursday. In the March quarter, company had a consolidated net profit of Rs 14,688.02 crore. It had clocked a net loss of Rs 1,168.02 crore in the same quarter of 2016-17.
As soon as the National Company Law Tribunal approved Tata Steel’s bid for the debt-ridden Bhushan Steel, the MD of Tata Staeel stated that BSL is right now operating at around 3-3.5 million tonne capacity, but we can easily take the limit to 4-4.5 mt.
On BSE, during the morning trade, Bhushan Steel rallied 5 per cent to Rs 26.35, while Tata Steel slumped 2.29 per cent to Rs 607.80.