“The NCLT ordered, inter alia, that a meeting of the Shareholders of the Transfer Company (Tata Steel Limited) be convened and held on Thursday, January 25, 2024, through video conference or other audiovisual means (“VC /OAVM’) (” Meeting”) to consider and if deemed fit, with or without modification(s), approve the Scheme,” the company said.
The meeting will be held via audio-visual medium at 11 a.m. on January 25.
Tata Steel merger plan
Tata Steel has approved the merger of its subsidiary Indian Steel and Wire Products along with the merger of six more subsidiaries in 2022. The company has approved the merger of Tata Steel Long Products, Tinplate Company of India, Tata Metaliks, TRF, The Indian Steel & Wire Products, Tata Steel Mining Limited, and S&T Mining Company with Tata Steel, according to its stock market filing published on September 22, 2022.
The approved merger of the subsidiary units in Tata Steel would help the company unlock the opportunity to create shareholder value. The proposed merger would also ensure the use of best practices, cross-functional learning, and utilization of each other’s facilities in a more efficient manner. The merger would also allow for the collaboration of the marketing and distribution network of both entities, the company said in its BSE filing.
In early 2023, Tata Steel CEO and Managing Director TV Narendran said that the proposed merger of a total of seven subsidiary companies with Tata Steel is likely to be completed in the current financial year ie FY 23-24. He also added that the timeline of the merger depends on the regulatory processes including NCLT clearances.
The board of Tata Steel on January 24 approved the issue of over 99 million new shares in the ratio of 79 shares of Tata Steel for every 10 shares of Tata Metaliks for their merger. The record date for that will be February 6.
Tata Steel posts profit in Q3 even as Europe operations bleed
Tata Steel turned the corner during the quarter ending December 31, 2023, helped by stronger performance in its India unit even as its European business continued to hemorrhage capital. The company reported a consolidated profit of ₹522 crore during the quarter compared to a loss of ₹2,502 crore in the corresponding quarter of last year and ₹6,511 crore in the previous quarter.
The recovery was mainly led by Tata Steel’s domestic unit, which reported a pre-tax, depreciation and interest profit of ₹8,257 crore as compared to ₹5,335 crore last year. Meanwhile, Europe reported a loss of ₹2,872 crore before tax, depreciation, interest and exceptional items.
“The UK business continues to face production shortfalls stemming from the end-of-life condition of several of its heavy assets. Weak demand has also weighed on the margins of the better performing Netherlands business,” said Koushik Chatterjee, managing director and chief financial officer, Tata Steel .
While the company turned the corner during the quarter, Narendran maintained that the business environment was tough. “The global operating environment has been complex, with the economic slowdown in China and geopolitics weighing on commodity prices in general,” he said.
During the December quarter, China exported between 7 and 8 million tons of steel every month, he said, which is the highest since 2015. This, he claimed, adversely affected global steel prices and profitability. “Despite this context, Tata Steel India delivered better margins aided by higher deliveries and realizations on a QoQ basis,” he said.
On a consolidated basis, the company reported a top line of ₹55,312 crores. This was 3 percent lower year-over-year and less than a percent lower sequentially. “Among the key segments, automotive and well-established brands like Tata Tiscon, Tata Steelium and Tata Astrum had the best 3Q sales ever,” Narendran said.
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Published: 25 Jan 2024, 06:51 IST