Shares of Tata Steel rose for the fourth consecutive session today as the Tata Group firm is planning to roll out the ‘First in India’ seating system for Vande Bharat Express trains from September 2022.
Upbeat investor sentiment after the stock split on July 28 also contributed to the rally today. Tata Steel stock hit an intraday high of Rs 111.45, rising 3.52 per cent against the previous close of Rs 107.65 on BSE. The stock was among the top Sensex gainers in early trade today.
Earlier, it opened with a gain of 2.27 per cent at Rs 110.10.
Market cap of the firm rose to Rs 1.31 lakh crore today. Shares of Tata Steel have lost 24.71 per cent in a year and lost 2.88 per cent in 2022.
However, the stock has gained 23.61 per cent in a month.
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Total 85.13 lakh shares of Tata Steel changed hands amounting to a turnover of Rs 92.48 crore on BSE.
Composites division of Tata Steel has won a Rs 145 crore bulk order for seating systems of the Vande Bharat Express that includes the supply of complete seating systems for 22 train sets, with 16 coaches in each train set.
“These are specially designed seats, which can rotate 180 degrees and have aircraft-style passenger amenities. This is first-in-India’ kind of a supply, which will be executed over 12 months starting September 2022,” Debashish Bhattacharjee, Vice President, Technology & New Materials Business, Tata Steel, told PTI.
“Composites industry in India is dominated by institutional businesses and is largely dependent on infrastructure, industrial and railway sectors. One of the key initiatives of the composites business was to convert to Fibre Reinforced Polymer (FRP) applications where steel is currently being used. Railways has been a promising customer for the FRP Composites business of Tata Steel, ” added Bhattacharjee.
The FRP used in the seats will have higher corrosion resistance and lower maintenance cost. Moreover, it will be conforming to the European standard of fire-retardant property, and will offer improved safety and comfort to passengers.
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Vande Bharat Express, also known as Train 18, is the second-fastest train in India, which operates at a speed of 130 km/hr.
The strong sentiment after the stock split, which has made shares more affordable for investors, also took the stock higher today.
The stock was the top Sensex gainer on July 29 (a day after the stock split came into effect). It opened with a gain of 2.64 per cent at Rs 103. Later, it closed at Rs 107.80, rising 7.42 per cent on BSE.
The stock split was conducted in the ratio of 1:10 , which means 10 shares were awarded in the hands of shareholders for each share they owned.
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