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Monday, August 12, 2013

TATA Sponge : Subsidary of TATA Steel


  • TATA Steel holds 54.5% of TATA Sponge.
  • Manufactures sponge iron + produces power.
  • Receives oron ore from TATA steel.
  • Cost of Iron ore and coal constitutes 85% of production.
  • Market cap: Rs.377 Crores
  • Debt : Nil
  • Cash balance : Rs.234 Crores => 62% of market value is in cash.
  • 40% discount to book value.
  • TATA Steel bought 11.26% stake from share holders by open offer for Rs.375/share. Current price is Rs.252.

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