Tata Group announces merger of seven subsidiaries into Tata Steel

23 Sept 2022 , 01:39 PM

The Tata Group announced the merger of seven of its metal subsidiaries into Tata Steel, on Friday. The company said that merger is taking place in an effort to streamline its metal operations.

Tata Steel’s board of directors approved the merger of seven of its subsidiaries, namely Tata Steel Long Products, Tata Metaliks, Tinplate Company of India, TRF, Indian Steel & Wire Products, Tata Steel Mining, and S&T Mining, into and with Tata Steel.

The company has announced share swap details under which, investors will get 79 shares of Tata Steel in exchange for 10 shares of Tata Metaliks’ share, at a 2% premium.

The company will issue 67 shares of Tata Steel for 10 shares of Tata Steel Long Products, at a 4.5% discount.

The company stated that for 10 shares of Tinplate Company, Tata steel will issue 33 shares at a 1% premium. Further, for 10 shares of TRF, Tata Steel will issue 17 of its shares, at a 53% discount.

Following this merger, Tata Steel’s assets will grow to Rs1.25 lakh crore, as per the sources.

The merger will combine the Transferor Company with the Transferee Company, resulting in targeted growth, operational efficiency, and increased business synergies. Furthermore, the resultant corporate holding structure will improve the merged entity’s business ecosystem’s adaptability, said the company on the mega-merger.

Following this development, Tata Steel’s counter trading at Rs105 up by 1.3% from its previous closing of Rs103.65 on the BSE. Tata Metaliks dipped 3.11% at Rs775.75 against previous close of Rs800.65. Tata Steel Long tanked 8.50% at Rs685 per piece.

TRF was trading at Rs355.65 down by 5% from its previous closing of Rs374.35 on the BSE. Tinplate Company was trading at Rs318.10 down by 5.98% from its previous closing of Rs338.35 on the BSE.

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