Heavy Buying: Government-Backed Tata Group Company Commissions India’s Largest Blast Furnace at Kalinganagar - FIIs and Government Increase Stake
In June 2024, FIIs increased their stake from 0.07 per cent, while the government also increased its stake by 0.02 per cent.
Tata Steel Ltd has announced that it successfully commissioned India's largest blast furnace at its Kalinganagar facility in Odisha. With an investment of Rs 27,000 crore, the Phase II expansion increases the site’s capacity from 3 million tonnes per annum (MTPA) to 8 MTPA. The new facility was inaugurated by T. V. Narendran, CEO and Managing Director of Tata Steel, along with senior company leaders.
This blast furnace will significantly enhance the plant's overall production capabilities, enabling Tata Steel to meet the rising demands of various industries, including automotive, infrastructure, power, shipbuilding, and defense. It will also provide benefits in sectors like oil and gas, lifting and excavation, and construction.
With the Phase II expansion, Odisha has become Tata Steel's largest investment destination in India, with total investments exceeding Rs 100,000 crore over the past decade. Founded in 1907, Tata Steel Ltd is Asia's first integrated private steel company, and it operates across the entire steel manufacturing value chain—from mining and processing iron ore and coal to producing and distributing finished products. The company aims to increase its domestic steelmaking capacity to 30 million tonnes per annum by 2025.
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On Friday, the shares of Tata Steel Ltd rallied and closed the day at around Rs 152.05 per share on the BSE. The company’s current market capitalization stands at Rs 1,89,810.75 crore. Additionally, the shares have delivered around 19 per cent return in the past 1 year.
The company doesn’t declare Quarterly Results, as per the half yearly results in March FY24, Tata Steel Ltd recorded a revenue of Rs 54771 crore compared to Rs 59490 crore. The operating profit stood at Rs 6694 crore. The net profit stood at Rs 919 crore compared to a profit of Rs 525 crore. Looking at the annual performance, the company generated a revenue of Rs 229171 crore in FY24. The operating profit for FY24 was Rs 22248 crore with an operating profit margin of 10 per cent with a loss of Rs 4910 crore.
According to the shareholding pattern of the company, the promoters hold a 33.19 per cent stake while public investors own 23.60 per cent of the shares. FIIs and DIIs hold a 19.68 per cent stake which was 19.61 per cent in Q4 FY24 and 23.33 per cent respectively. Government holds around 0.18 per cent as per the recent update which was earlier 0.16 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.