Tinplate Company and Tata Sponge Iron have risen more than 13% each on back of huge volumes in opening deals after its promoter Tata Steel proposed to hike its stake in group firms by up to 14% and 11.26% for a total consideration of Rs 153 crore.
Tata Steel in a filing to the stock exchange said that it will acquire up to 1.46 million shares in The Tinplate Company for Rs 60 a share for a total of about Rs 87.92 crore.
While in a separate exchange filing, the steel major announced a voluntary offer to buy up to 1.72 million shares in Tata Sponge Iron, an associate firm, at Rs 375 a share, entailing a total outgo of Rs 65.02 crore.
Following the offer, Tata Steel's stake in Tata Sponge Iron would go up to 51% and up to 73.44% in The Tinplate Company, if subscribed fully.
ICICI Securities is the manager of the Open Offers of both the issues.
Tinplate Company of India has soared almost 20% at Rs 55.80, while Tata Sponge Iron has rallied 14% to Rs 350 on the Bombay Stock Exchange.