TRF shares surge as a result of the Tata Steel merger's cancelation

TRF shares surge as a result of the Tata Steel merger's cancelation

TRF shares surge as a result of the Tata Steel merger's cancelation

In return for 10 shares of the firm, TRF stockholders were to get 17 shares of Tata Steel, representing a 53 percent discount at the time. Taking into account the closing price on February 6, the discount was lowered to 10%.

The merger proposal between Tata Steel Long Products, The Tinplate Companies of India, Tata Metallics, TRF Limited, Indian Steel & Wire Products, Tata Steel Mining, and S&T Mining Company was authorized by Tata Steel in September 2022.

As Tata Steel reversed the judgment on the disadvantageous swap ratio and halted the two companies' merger, TRF shares surged by 20% on February 7.

TRF on NSE closed in the upward circuit at Rs 327.70 at 11:15 a.m.

"Tata Steel has been delivering significant operational and monetary backing through ordering and infusion of funds since the announcement of the potential merger of TRF in September 2022," the company said in an exchange filing.

"TRF has successfully navigated an extremely hard operating environment, transforming its business achievement, with the active support of Tata Steel."

Tata Steel stated in September 2022 that it will combine with seven of its group firms; nevertheless, the exchange ratio for TRF was unfavorable.

In return for 10 shares of the firm, TRF stockholders were to get 17 shares of Tata Steel, representing a 53 percent discount at the time. By February 6th, the discount had dropped to 10% of the closing price.

In the last year, TRF shares have risen by around 97%. With a current market valuation of Rs 360 crore, Tata Steel owns 34% of the company's shares.

What about other combinations?

The merger proposal between Tata Steel Long Products, The Tinplate Enterprise of India, Tata Metallics, TRF Limited, Indian Steel & Wire Products, Tata Steel Mining, and S&T Mining Company was authorized by Tata Steel in September 2022.

The TRF merger has been canceled, although Tata Steel's merger with Indian Steel & Wire Products is still in the advanced stages. All of the remaining tasks have been finished.

"The merger of five companies with a cumulative yearly revenues of ~Rs 19,700 crore in record time in FY23 presents an unparalleled chance for consolidation of downstream operations," the business said.

The suggested strategy aimed to rationalize logistical costs, improve customer satisfaction and services, expedite project pipeline execution, simplify operational integration and enhance facility usage, and increase working capital and cash flow management efficiency.

Tata Steel was trading on the NSE at Rs 145.45 at 11:15 a.m., 0.5% higher than its previous closing.