Why did TRF hit the upper circuit on Thursday?

10 Jun 2022 , 02:50 PM

After Tata Steel invested Rs 165 crore in the company for its working capital requirements, TRF’s share price hit the upper circuit.
“Tata Steel has bought 16.5 crores, 12.17 percent (effective yield) non-cumulative, non-convertible, non-participating, redeemable preference shares (NCRPS) of face value Rs 10 each of the firm,” TRF said in a BSE filing on June 8, This makes the total investment Rs 165 crore.

Tata Steel holds a 34.11 percent ownership holding in TRF, as well as 25 crore non-convertible redeemable preference shares and 2.5 crores 11.25 percent optionally convertible redeemable preference shares (OCRPS) at the time of this transaction.
TRF is in the business of designing and producing bulk material handling systems and equipment for core industry sectors such as power, ports, steel, mining, and cement for turnkey projects.

By buying the NCRPS, Tata Steel has assisted its associate company TRF in meeting its additional working capital requirements, repaying the whole or a part of the existing debts, and other general corporate purposes.