Tata Steel, one of the leading steel makers in the world,  witnessed a rise in share price on Thursday sfter the pension deficit of the company's UK arm, Tata Steel UK (TSUK) reduced sharply by 83.64%.

The company said, 'As a result of measures agreed between the Trustee of the British Steel Pension Scheme and TSUK, the on-going residual deficit has been reduced from around 550 million pounds as on Mar'11 to 90 million pounds as on Mar'14.

'The benefit changes implemented following consultation between TSUK, its employees and the scheme representatives triggered the reduction in pension deficit,' it added.

Shares of Tata Steel are trading at Rs 238.35, up Rs 1.55, or 0.65% at the Bombay Stock Exchange (BSE) on Thursday at 1:03 p.m.

The scrip has touched an intra-day high of Rs 242.40 and low of Rs 236.30. The total volume of shares traded at the BSE is 1,110,242.