In a bid to drive efficiency and cut operational costs, Tata Steel has decided to merge seven subsidiaries, including four listed entities with itself. The Board of Directors of all the Tata Steel group companies have approved the schemes for the proposed amalgamation.
Based on an independent valuer report, Tata Steel Long Products investors will get 67 shares of Tata Steel for every 10 shares held. Similarly, for every 10 shares of the Tinplate Company of India, 33 shares of Tata Steel will be issued. Ten shares of Tata Metaliks will fetch 79 shares of Tata Steel and TRF Ltd investors will get 17 shares of Tata Steel for every 10 shares held.
The consolidation of downstream operations, in line with Tata Steel’s long-term strategy, would enable expansion in value-added areas by utilizing Tata Steel’s marketing and sales network. The mergers will also result in synergies in raw material security, centralized procurement, inventory optimization, lower shipping costs, and greater facility utilization.