Shares of TRF, the Tata Group company involved in the manufacturing of engineering equipment and systems surged to an upper circuit of 20% after it decided to call off the proposed scheme of amalgamation with parent company Tata Steel.
In an exchange filing on Wednesday, TRF said that it has decided to not proceed with the scheme of amalgamation with Tata Steel as the last few quarters have seen business performance improve.
It also highlighted support from parent company Tata Steel in the form of placement of orders and infusion of capital.
On its part, TRF also attempted to enhance debtor collections along with attempting cost and asset optimisation.
The board of Tata Steel has also consented to withdrawal of the scheme.
An application to withdraw the proposed scheme has been filed with the Kolkata bench of the National Company Law Tribunal (NCLT) who has convened a meeting of the company's shareholders on February 8 to consider the above scheme to be infructuous.
Promoters hold a 34.6% stake in TRF based on the December quarter shareholding pattern.
Shareholders of TRF were to get 17 shares of Tata Steel for every 10 shares that they held, as part of the merger swap ratio.
Shares of TRF, post the 20% jump on Wednesday are almost back at the levels at which they were when the merger was announced in September 2022. The stock is currently at ₹328, while it had closed at ₹338.85 on September 26, 2022.
First Published: Feb 7, 2024 10:27 AM IST