Shares of TRF Ltd. hit the 20% upper circuit limit and an over one-year high on Wednesday after its board called off its merger with Tata Steel as business improved.
The company's business has improved over the last few quarters due to help from Tata Steel Ltd. in the form of placement of orders, capital infusions and its own efforts on cost and asset optimisation, according to an exchange filing. TRF had entered into a merger agreement with Tata Steel in September 2022.
Tata Steel's board has also given consent to the withdrawal of the merger. An application to withdraw the scheme has been filed with the Kolkata bench of the National Company Law Tribunal, according to the exchange filing.
On the NSE, TRF's stock rose as much as 19.99% to Rs 327.70 apiece, the highest since Sept. 26, 2022. This compares to a 0.11% decline in the benchmark Nifty 50 at 12:30 p.m.
The total traded volume so far in the day stood at 15 times its 30-day average. The relative strength index is 79, indicating that stock may be overbought.
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