Tata Steel Merges Five Businesses, Three Other Mergers In Advanced Stage
The merger of five companies, with a cumulative annual turnover of Rs 19,700 crore in FY23, was done in record time, the company said.
Tata Steel Ltd. has announced its successful merger with five businesses after duly completing the regulatory processes.
These companies include:
Tata Steel Mining Ltd. with an annual turnover of Rs 5,000 crore in FY23, merged effective Sept. 1, 2023.
Tata Steel Long Products Ltd. with an annual turnover of Rs 7,464 crore in FY23, merged effective Nov. 15, 2023.
S&T Mining Co. merged effective Dec. 1, 2023.
The Tinplate Co. of India with an annual turnover of Rs 3,983 crore in FY23, merged effective Jan. 15, 2024.
Tata Metaliks Ltd. with an annual turnover of Rs 3,260 crore in FY23, merged effective Feb. 1, 2024.
The merger of five companies, with a cumulative annual turnover of Rs 19,700 crore in FY23, was done in record time, the company said in an exchange filing.
"This will enable growth in value added segments by leveraging Tata Steel’s nationwide marketing and sales network. The amalgamation is value-accretive and will also drive synergies through raw material security, centralised procurement, optimisation of inventories, reduced logistics costs, and better facility utilisation," it said.
For three other companies—Bhubaneswar Power Pvt. (wholly owned subsidiary of Tata Steel), Angul Energy Ltd. (Tata Steel shareholding: 99.99%) and The Indian Steel and Wire Products Ltd. (Tata Steel shareholding: 98.15%), the merger process is in advanced stages with the respective jurisdictional company law tribunals and is expected to be completed by Q1 FY25, subject to regulatory approvals, the filing said.
The Tata Group companies' combined market capitalisation crossed the Rs 30 lakh-crore mark as technology stocks rallied on Tuesday. This makes it the first conglomerate to touch this landmark.
The market cap of the conglomerate touched a high of Rs 30.52 lakh crore intraday and later closed at Rs 30.38 lakh crore. Tata Consultancy Services Ltd. has about half of the group's market cap with Rs 15.13 lakh crore, followed by Titan Co. and Tata Motors Ltd.
Shares of Tata Steel Ltd. rose as much as 1.90% during the day. The stock was trading 0.10% lower, compared to a 0.22% decline in the NSE Nifty 50 at 11:43 a.m.
Total traded volume so far in the day stood at 2.1 times its 30-day average.
Of the 31 analysts tracking the company, 19 maintain a 'buy', six recommends a 'hold,' and six suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 1.4%.
