New Delhi [India] : Shares of TRF hit the 20 per cent upper circuit on Wednesday, minutes after it called off a merger deal with Tata Steel.
The shares of the Tata Group company involved in the manufacturing of engineering equipment and systems were at Rs 327.70, up 19.99 per cent at 11.07 am. The upper circuit is the highest possible price that the stock of a firm can trade at on that particular day.
Tata Steel announced the merger of all Tata Group metal companies in September 2022. The Board had approved the scheme to realise synergies from the amalgamation and to enhance stakeholder value.
‘Over the last few quarters, the Company has seen improvement in business performance owing to ongoing significant support from Tata Steel in the form of placement of order(s) and infusion of capital coupled with Company’s efforts on enhanced debtor collections and, cost and asset optimization,’ said TRF in an exchange filing on Wednesday morning.
‘In light of the above, the Board, has on February 6, 2024, decided to not to proceed with the Scheme and approved withdrawal of the Scheme. In concurrence with the decision of the Board, the Board of Directors of Tata Steel has also consented to the withdrawal of the Scheme,’ the filing added.
An application to withdraw the Scheme has been filed with the National Company Law Tribunal (NCLT), Kolkata Bench.