TRF Soars 20% After Ditching Merger, Independent Future Beckons

7 Feb 2024 , 06:45 AM

TRF’s stock increased 20% to reach its upper circuit limit on Wednesday. At ₹327.70 per share, TRF shares were up 19.99% on the Bombay Stock Exchange (BSE).

This has happened as a result of TRF’s decision to abandon its intention to merge with Tata Steel, its parent firm.

TRF clarified that the company no longer needs to merge because it has been operating profitably for the past few months. They stated that by placing orders and making financial investments in the business, Tata Steel has been supporting them.

‘The company’s efforts on improved debtor collections and, cost and asset optimisation, coupled with ongoing significant support from Tata Steel in the form of placement of order(s) and infusion of capital have led to an improvement in business performance over the last few quarters,’ the company stated in a stock exchange filing.

‘In view of the aforementioned, the Board resolved on February 6, 2024, to approve the Scheme’s withdrawal and to not move on with it. The Board of Directors of Tata Steel has also approved the withdrawal of the Scheme, in accordance with the Board’s decision, the company’s exchange filing stated.

TRF has also been trying to strengthen its financial position by pursuing ways to reduce expenses while making better use of their resources, as well as by pursuing consumers who owe them money.

It should be mentioned that TRF has officially withdrawn the merger proposal from the National Company Law Tribunal (NCLT) after the board of Tata Steel decided to revoke the merger plan. TRF’s shareholders will get together on February 8th to talk about this.

The people or organisations that founded TRF, known as its promoters, own about 34.6% of the company.

Tata Steel said in September 2022 that it intended to combine all of its metal businesses, including TRF, into one company. This move to void the merger follows that announcement.

According to this plan, TRF stockholders were to get 17 Tata Steel shares for every 10 TRF shares they possessed.

The price of TRF shares has nearly reached its pre-merger level as a result of this abrupt shift, which occurred in September 2022.

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