Tata steel shares surges by Rs 28.55 to ends firm at Rs 600.35

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Mumbai, Aug 29 (UNI) Scrips of mega steelmaker, Tata Steel shot up by Rs 28.55 to end at a month's peak of Rs 600.35 after it posted a 60.5 per cent rise in April-June 2008 consolidated net profit.

The Company's shares, which opened high at Rs 585, had recorded the day's high and low of Rs 605.80 and Rs 582 respectively with the volume of shares traded being 10,40,182 on a single day against two-week average of 13,97,055 shares, a leading broker said.

The steelmaker planned to raise at least USD one billion from a stake sale to private equity firms or through private placement, according to Company's reports.

The Company, part of the Tata Group conglomerate, rose to become the sixth biggest steelmaker after acquiring Anglo-Dutch company Corus for USD 13.7 billion last year. The merged Tata Steel-Corus company plans to produce 25.6 million tonne annually.

Since May, Tata Steel has kept steel prices in India unchanged following a government directive in an effort to contain inflation.

However, it faces the challenge of meeting rising raw material costs, which could weigh on future profits, according to analysts UNI AR RN NP1923

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