Tata Steel Share Price Rises Nearly 2% After Rs. 890 Cr GST Notice & Acquisition Update; BUY/HOLD/SELL?

Tata Steel shares are in sharp focus today after the company disclosed a major regulatory development post-market hours on Wednesday. Tata steel share price jumped about 1.88% intraday this morning. In a filing with the stock exchanges, Tata Steel revealed it has received a demand-cum-show cause notice from the Central Goods and Services Tax (CGST) department, related to the irregular availing of Rs. 890.52 crore input tax credit.

Rs. 890.52 Crore GST Notice: What We Know

According to the exchange filing dated June 25, the notice was issued by the Office of the Commissioner of CGST & Central Excise, Jamshedpur, and is dated June 13, 2025. Tata Steel received the communication on June 24.

The show cause notice points to irregularities in input tax credit claims during FY 2018-19 to FY 2020-21, allegedly in violation of Sections 16 and 41 of the CGST Act, 2017, along with relevant provisions under the IGST Act.

The GST department has asked the company to explain why the said ITC amount - along with applicable interest and penalty - should not be recovered. A timeline has been provided for Tata Steel's response.

Other News: Strategic Acquisition in Singapore Subsidiary

In parallel, Tata Steel also announced the acquisition of 1.79 crore equity shares in its Singapore-based subsidiary, T Steel Holdings Pte Ltd, for a total consideration of USD 180 million.

"We wish to inform you that the company has today, i.e., on June 25, 2025, acquired 179,10,44,776 equity shares of face value USD 0.1005 each aggregating to USD 180 million (Rs. 1,562.54 crore*) in TSHP. Post this acquisition, TSHP will continue to be a wholly owned subsidiary of the company." The exchange filing read.

Tata Steel Share Price

As of 10 AM, Tata Steel shares were trading at Rs. 158.55, up 1.38% for the day. The stock opened at Rs.156.87. With the current price, Tata Steel has now gained approximately 29.07% from its 52-week low.

Tata Steel shares closed higher on Wednesday. The shares ended the session at Rs 156.40 on BSE, up 1.03% from the previous day's close.

Tata Steel shares have performed relatively better in the past 5 days, rising 3.37%. The metal stock rose 11.38% in the last 6 months. So far in 2025 the Tata Steel shares have jumped 14.33%.

Tata Steel Share Price Target

Brokerage firm Antique has maintained a target price of Rs.165 for Tata Steel with a potential upside of approximately 5% from current market levels. In its report dated June 5, the firm pointed out several key positives supporting its bullish stance.
The report noted that domestic steel demand remains robust, citing provisional data from the Joint Plant Committee (JPC) which showed a 4.6% year-on-year growth in finished steel consumption to 11.9 million tonnes (MT) in April 2025.

"We prefer steel companies with strong market presence, greater raw material integration, low leverage, and higher exposure to the domestic market. Tata Steel fits well into this framework. Tata Steel's ongoing expansion efforts, including the ramp-up of its 5 MTPA Kalinganagar blast furnace, India's largest, and a 2.2 MTPA cold rolling mill complex, which are expected to drive volume growth," the report stated."

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