Tata Steel has scrapped the merger of its associate company TRF with itself as its business performance has turned around.
In Sept 2022, it had decided to fold TRF into itself as part of a broader exercise to streamline its corporate structure. But since then, it has infused funds, placed orders with TRF, helping the material handling equipment manufacturer navigate a challenging operating environment.
As a result, its financials improved and the TRF stock hit the 20% upper circuit on the BSE. Trading volume in the counter also jumped substantially. Compared to an average daily volume of about 36,000 shares over the last two-week period, the turnover touched nearly 160,000 shares, BSE data showed.
The metal flagship of Tata Group has amalgamated five arms, Tata Steel Long Products (which had a turnover of £746.4 mn in FY23), Tata Steel Mining (£500 mn), Tinplate Company of India (£398.3 mn ), Tata Metaliks (£326 mn) and S&T Mining Company with itself. The consolidation has led to a minor dilution of parent Tata Sons’ stake in Tata Steel. Initially, Tata Steel planned to combine seven businesses into it. Last week, it said the merger process of The Indian Steel and Wire Products is in an advanced stage and will be concluded by Q1 FY25. It also proposes to merge Bhubaneswar Power and Angul Energy into it.