Tatas to fold seven metal companies into Tata Steel

MUMBAI: Tata group is bringing the domestic steel business including seven different companies under one roof. The Group will merge four listed companies and three unlisted companies with leading companies Tata Steel in a move to streamline the company structure and consolidate operations in similar business areas.
The four listed companies are Tata Steel Long Products (of which Tata Steel holds about 75%), India’s Tinplate Company (where Tata Steel owns nearly 75%), Tata Metaliks (60%) and TRF (34%). While the three unlisted entities are Steel & Wire Products of India (in which Tata Steel has a 95% interest), Tata Steel Mining (100%) and S&T Mining (100%).
To consider the merger, Tata Steel will issue 67 shares to public shareholders of Tata Steel Long Products for every 10 shares held by them. It will also distribute 33 shares to Tinplate’s public shareholders for every 10 shares they own. Likewise, Tata Steel will issue 79 shares to non-Tata Metaliks shareholders for every 10 shares they hold. In addition, for every 10 shares held by them, 17 shares will be issued to TRF’s public shareholders.
After the share allocation, the public ownership ratio in Tata Steel will increase slightly from the current level of 66%. Upon completion of the merger, Tata Steel will be the only unit from the Tata Group metals industry to remain listed on the stock exchange.
Tata Corporation previously announced plans to combine Tata Metaliks with Tata Long Products. However, this proposal was withdrawn when the group now decided to merge Tata Long Products and Tata Metaliks with Tata Steel. Following the proposed changes, Tata Metaliks MD Sandeep Kumar and TRF MD Alok Krishna will step down. Both will receive new quests in Tata Steel.
Since 2019, Tata Steel has reduced 116 companies (72 defunct subsidiaries, 20 eliminated associates and joint ventures, and 24 currently liquidated) in its corporate structure. This has helped the company save a lot of costs.
Tata Corporation previously transferred its branded salt and lentils business from Tata Chemicals to Tata Consumer, placing the defense and aerospace business club under a single umbrella and announced a merger Tata coffee with Tata Consumer.

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