 "mergers and acquisitions")
Shares of TRF were locked in the 20 per cent upper circuit at Rs 328.40 on BSE in Wednesday's early trade after the company withdrew its merger with Tata Steel.
The plan was called off as TRF said it has seen its business performance improve in the last few quarters.
In the past two trading days, the stock of the Tata Group firm has zoomed 29 per cent. Currently, it is trading at its highest level since September 2022.
A combined 683,000 shares changed hands and there were pending buy orders for nearly 800,000 shares on the NSE and BSE, at the time of this report.
TRF 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, cost and asset optimization, it said in a filing.
In light of the above, its board decided to not proceed with the amalgamation scheme and approved its withdrawal.
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The board of directors of Tata Steel has also consented to the withdrawal of the scheme, the company said.
Meanwhile, shares of Tata Steel hit a 52-week high of Rs 147.35, up 2 per cent on BSE in intra-day trade today. The stock is trading close to its record high level of Rs 153.45 touched on August 16, 2021.
In line with its long-term strategy and commitment to simplify the business portfolio, Tata Steel in September 2022 had announced its intent to amalgamate nine strategic businesses.
The board of Tata Steel had recommended a share exchange ratio of 17 equity shares of Rs 1 each of the company for every 10 shares of Rs 10 each held by the public shareholders of TRF.
