TRF shares hit upper circuit as Tata Steel calls off merger
TRF shareholders were to get for 17 shares of Tata Steel for 10 shares of the company, which was a 53 percent discount at the time
TRF shares hit 20 percent upper circuit on February 7 as Tata Steel called off the merger between the two, reversing the decision on unfavourable swap ratio.
At 11:15 am, TRF was locked in upper circuit at Rs 327.70 on the NSE.
In September 2022, Tata Steel had announced merger between seven of its group companies and itself, but the swap ratio for TRF was not a favourable one.
TRF shareholders were to get for 17 shares of Tata Steel for 10 shares of the company, which was a 53 percent discount at the time.
As per the closing price of February 6, the discount had narrowed to 10 percent.
TRF shares have gained close to 97 percent over the past year. Its current market capitalisation is Rs 360 crore and Tata Steel holds 34 percent in the stock.
The proposed scheme was to synergise operational integration and better facility utilisation; improve customer satisfaction and services; efficiency in working capital and cash flow management; faster execution of projects in pipeline; rationalisation of logistics costs.