As part of the merger agreement, Tata Steel will provide shareholders of Tata Steel Long Products 7.58 crore shares.

2 Nov 2023 , 10:20 AM

Following the National Company Law Tribunal’s approval, the board of Tata Steel Ltd. has approved issuing up to 7.58 crore shares to Tata Steel Long Products shareholders as part of the proposed merger plan.

For every ten shares they own in Tata Steel Long Products, shareholders will receive 67 shares of Tata Steel.

The company will thereafter fix the record date for the same. Tata Steel announced plans to combine seven of its companies, including Tata Steel Long Products, in September 2022.

The goal of the merger is to streamline the corporate holding structure, create business synergies, and consolidate the operations to maximize operational efficiencies.

On Wednesday, the board also gave its approval to the combination of parent company Tata Steel Ltd. and another wholly-owned subsidiary, Bhubaneshwar Power Pvt Ltd.

The steelmaker also released its September quarter numbers on Wednesday, and it revealed a consolidated net loss of Rs 6,196 crore, which was very disappointing.

Restructuring and impairment charges related to the European company were the main causes of this.

The quarter’s total revenue of Rs 55,682 crore decreased 7% year over year. On the National Stock Exchange, Tata Steel shares closed over 2% lower at Rs 116.60.

For feedback and suggestions, write to us at [e-mail]