Tata Steel’s share price started the fresh week in the green, making gains for the fourth straight session on Monday.
What Happened: Shares of the Tata Group company are upbeat today as the company late last week confirmed the much-anticipated agreement with the UK government.
Tata Steel and the UK government have jointly unveiled a proposal to commit £1.25 billion (₹12,874 crore) towards the establishment of electric arc furnace steel production facilities at the Port Talbot site. This investment package includes a grant of up to £500 million (₹5,150 crore) provided by the UK government.
This initiative is projected to result in a reduction of 50 million tonnes in direct emissions over the course of a decade, the company said in a statement. The company also announced plans to allocate an investment of around £20 million (₹205 crore) over a span of four years to establish two new Centers of Innovation & Technology in the United Kingdom.
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One centre will be located at the Henry Royce Institute in Manchester, dedicated to advanced materials research. The second centre will be situated at Imperial College London, with a specific focus on research in sustainable design and manufacturing.
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Most brokerages were also impressed by the new development. Global brokerage firm maintained its “outperform” rating on the stock raising the target price to ₹145 from ₹125. Jefferies also maintained its “buy” rating for the stock with a price target of ₹145. Morgan Stanley, on the other hand, maintained its “equalweight” rating for the stock with a price target of ₹119.
Price Action: Tata Steel’s share price was up 1.29% to trade at ₹133.65 as the markets opened on Monday.
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