Tata Steel approves allotment of 8.65cr stocks to TCIL shareholders
Tata Steel's board has given the green light to allot 8.65 crore stocks to eligible shareholders of the Tinplate Company of India (TCIL). This news comes following the merger of the two firms on January 15. The share exchange ratio is set at 33:10, meaning that for every 10 fully paid-up TCIL shares, shareholders will receive 33 fully paid-up Tata Steel stocks, each with a face value of Rs. 1.
Details on the allotment process
Tata Steel further explained the allotment process, stating that "17,019 fully paid-up equity shares of Tata Steel of face value ₹1/- each, were allotted to 'TSL-TCIL Fractional Share Entitlement Trust' (managed by Axis Trustee Services Limited)." Additionally, 18,60,864 fully paid-up equity shares were allotted to the 'Tata Steel Limited - Unclaimed Securities - Suspense Escrow Demat Account TSL-TCIL Merger' maintained with Standard Chartered Bank.
Merger's strategic significance
The merger between TCIL and Tata Steel can be described as a strategic move by the latter to streamline its operations and improve its tinplate division's performance. To manage this division, Tata Steel has established a Tinplate Division Business Council, consisting of 17 members.
A look at Tata Steel's stock prices
On Saturday, Tata Steel's shares opened at Rs. 132.60 apiece on the National Stock Exchange (NSE). It closed 2.21% higher at Rs. 133.90. The company has a market capitalization of Rs. 1.65 lakh crore. Meanwhile, on the Bombay Stock Exchange (BSE) it settled at 2.17% higher at Rs. 133,90 per stock.
