29, February, 2024
HomeBusinessTata Steel Approves Share Allotment to Tinplate Company of India Shareholders Following Successful Merger

Tata Steel Approves Share Allotment to Tinplate Company of India Shareholders Following Successful Merger

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In an exciting development, Tata Steel announced on Sunday that its board has given the green light for the allotment of 8.65 crore shares to eligible shareholders of Tinplate Company of India, as of the record date set on 19 January.

Read Also | Tata Steel Reports Dip in Delivery Volumes for Q2; Stock Slides 2%

This approval marks a significant step, coming just days after the operationalization of the merger between Tata Steel and Tinplate Company of India on 15 January.

According to a regulatory filing, Tata Steel revealed that eligible shareholders of Tinplate Company of India are set to receive fully paid-up equity shares of Tata Steel in the share exchange ratio of 33:10. This translates to 33 fully paid-up ordinary equity shares of Tata Steel, each with a face value of ₹1, to be allocated for every 10 fully paid-up equity shares of TCIL, each with a face value of ₹10, as stated by the company.

Delving into the details of the allotment scheme, Tata Steel explained, “17,019 fully paid-up equity shares of Tata Steel of face value ₹1/- each, have been allotted to the ‘TSL-TCIL Fractional Share Entitlement Trust’ (managed by Axis Trustee Services Limited), catering to the fractional entitlements of eligible TCIL shareholders.

This includes all additions or accretions, with the trust established for the benefit of TCIL shareholders during the share allotment process, adhering to the Share Exchange Ratio of 33:10 outlined in the Scheme of Amalgamation.”

Furthermore, the company added, “18,60,864 fully paid-up equity shares of Tata Steel of face value ₹1/- each, have been allotted to the ‘Tata Steel Limited – Unclaimed Securities – Suspense Escrow Demat Account TSL-TCIL Merger,’ maintained with Standard Chartered Bank, Fort Branch, Mumbai.

This aggregate represents equity shares of eligible TCIL shareholders holding physical shares as of the Record Date, whose individual demat account details are pending availability to the Company as of the date of allotment.”

The merger of Tinplate Company of India (TCIL) with Tata Steel is viewed as a strategic maneuver by Tata Steel to streamline operations and boost the performance of its tinplate division.

Read Also | Tata Steel Implements Strategic Workforce Changes: 800 Jobs Cut in Netherlands

In addition to the merger, Tata Steel has made the decision to establish a Tinplate Division Business Council, comprising 17 members, tasked with overseeing the operations of the tinplate division. This move underscores Tata Steel’s commitment to optimizing efficiency and driving growth in this crucial segment of its business.

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