India's Tata Steel gains over 4% on merger with group metal cos

Tata Steel Long Products

23/09/2022 07:45

** Shares of Tata Steel  TISC.NS  rise as much as 4.2% to
107.90 rupees, their best intra-day pct gain since July 29
    ** Tata Steel late on Thursday said its board approved
merger of seven group metal companies, including Tata Metaliks
 TMET.NS , Tata Steel Long Products  TTST.NS , Tinplate Co of
India  TINP.NS , TRF  TTRO.NS  with the steel maker  urn:newsml:reuters.com:*:nFWN30T2YN
    ** The move seeks to streamline group structure that will
reduce legal, regulatory compliance requirements, costs
"significantly" and increase operational efficiencies among
group companies - co says (https://bit.ly/3C5bewC)
    ** Tata Steel will give 79 shares for every 10 of Tata
Metaliks, 33 for every 10 of Tinplate, 67 for every 10 of Tata
Steel Long Products, and 17 for every 10 of TRF 
    ** We are positive on the company after the event and
maintain "BUY" rating on the stocks to 146 rupees per share-
Anand Rathi analysts said in a note
    ** TISC had approved sub-division of shares in the ratio
1:10 in June 
    ** About 66.7 mln shares change hands vs 30-day avg of 61.5
mln shares
    ** TISC shares down 6.8% so far this yr as of last close
 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))