Tata Group company TRF's share price was locked in a 5 percent upper circuit after Tata Steel, the promoter, invested Rs 165 crore in the company for its working capital requirements.
The stock remained on buyers' radar throughout the session as it opened at Rs 140.85 and got immediately locked in at Rs 141.45, up 5 percent on the BSE.
The material handling equipment manufacturer in its BSE filing said on June 8, "Tata Steel has acquired 16.5 crore, 12.17% (effective yield) non-cumulative, non-convertible, non-participating, redeemable preference shares (NCRPS) of face value Rs 10 each of the company," thereby investing Rs 165 crore.
At present and before this investment, Tata Steel as a promoter held a 34.11 percent equity stake in TRF, and also has 25 crore non-convertible redeemable preference shares and 2.5 crore, 11.25 percent optionally convertible redeemable preference shares (OCRPS) of the company.
Through the buying of NCRPS, Tata Steel will assist its associate company TRF in meeting its additional working capital requirements, repaying the whole or a part of the existing debts, and other general corporate purposes.
TRF is engaged in the business of designing & manufacturing the bulk material handling systems and equipment for core sector industries such as power, ports, steel, mining, and cement for projects undertaken on a Turnkey basis.
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