Tata Steel - Tata Steel Long Products merger update: Check share issuance ratio and record date
According to an exchange filing by Tata Steel, its board at a meeting held on Wednesday approved the issuance of shares in terms of the sanctioned scheme of amalgamation.
Tata Steel has announced that it will issue equity shares of the company to the shareholders of Tata Steel Long Products under the proposed merger plan. Earlier in October, the National Company Law Tribunal (NCLT) had approved the amalgamation of Tata Steel Long Products with Tata Steel.
According to an exchange filing by Tata Steel, its board at a meeting held on Wednesday approved the issuance of shares in terms of the sanctioned scheme of amalgamation.
Tata Steel will issue 67 equity shares of the company to the shareholders of Tata Steel Long Products for every 10 equity shares held by them in the latter. The issuance of equity shares of Tata Steel to the shareholders of Tata Steel Long Products will be subject to their eligibility as of the record date.
"Approved the issuance of up to 7,58,00,310 fully paid-up equity shares of Re 1/- each, in the ratio of 67 fully paid-up equity shares of Tata Steel Limited of face value Rs 1/- each for every 10 fully paid-up equity shares of Tata Steel Long Products Limited (‘TSLP’) of face value Rs 10/- each, to the eligible shareholders of TSLP as on the Record Date," the company said in a filing.
Tata Steel - Tata Steel Long Products merger update: Merger Date
The record date will be fixed mutually by the Board of Directors of the Company as well as the Board of Directors of TSLP, it said further.
Meanwhile, Tata Steel shares on Thursday traded under pressure after the company reported overall weak numbers in the July-September quarter of the current financial year. The stock declined as much as 1.70 per cent to the day's low of Rs 114.6 apiece.
Tata Steel reported a consolidated net loss of Rs 6,511 crore in the second quarter of 2023-24 as the company was hit by impairment charges and shrinking margins in its operations in Europe. The company had made a net profit of Rs 1,297 crore in the same quarter last year.
Tata Steel reported a consolidated total revenue from operations of Rs 55,681 crore as against Rs 59,877 crore reported in the year-ago period.
With PTI Inputs
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