Tata Steel rallies 4%, shares of subsidiaries fall up to 9% on merger plan

Shares of the to-be merged subsidiaries, Tata Steel Long Products, Tinplate Company of India, Tata Metaliks, and TRF declined 2 - 9 per cent each.

Shares of Tata Steel rallied 4 per cent to Rs 107.90 on the BSE in Friday’s intra-day trade after the company's board approved amalgamation of seven group companies with itself. The companies include Tata Steel Long Products, Tinplate Company of India, Tata Metaliks, TRF, Indian Steel and Wire Products, Tata Steel Mining and S&T Mining. Each amalgamation is subject to approvals from relevant authorities.

Under the new proposed amalgamation scheme, Tata Steel to allot 67 shares for every 10 shares of Tata Steel Long Products. For Tata Metaliks, Tata Steel will give 79 shares for every 10 shares of