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Shares of Tata Steel rose 2.5 per cent today after the company said its UK arm has concluded the actuarial valuation of British Steel Pension Scheme (BSPS) and the deficit in the scheme has reduced to £90 million (around $138 million) as on March 31, 2014.
The stock gained 2.36 per cent to Rs 242.40 on the BSE. On the NSE, it went up by 2.49 per cent to Rs 242.70.
The residual deficit of Tata Steel UK Ltd (TSUK), an indirect subsidiary of Tata Steel, stood at around £550 million (over $842 million) for the period ended March 31, 2011.
Trustee of BSPS and TSUK have concluded the triennial actuarial valuation of the scheme as of March 31, 2014, the company had said in a regulatory filing.
“As a result of measures agreed between the Trustee and TSUK and benefit changes implemented following consultation between TSUK, its employees and their representatives, the on-going residual deficit has been reduced from around £550 million pound as on March 31, 2011 to £90 million pound as on March 31, 2014,” it added.
BSPS is the largest defined benefit scheme within Tata Steel Europe’s portfolio. On account of low interest rates in the UK, the valuation placed on the scheme’s liabilities increased significantly since the last actuarial valuation in 2011 leading to a greatly increased funding deficit.
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