The Board of Tata Steel has approved the amalgamation of its seven subsidiaries- Tata Steel Long Products, Tata Metaliks, The Tinplate Company of India Limited, TRF Limited, Indian Steel & Wire Products, Tata Steel Mining and S&T Mining with itself.
With this strategic move, the board aims to achieve:
🌟 Simplification of Management leading to a sharper focus on business
🌟 Drive Efficiency- Cut Operational costs
🌟 Simplify the holding structure of Tata group’s businesses
🌟 Improve flexibility and help some of the businesses grow
Reacting to the development, the four listed companies that are being merged into Tata Steel tanked between 5-12 per cent on Friday. #Tata Steel Long Products fell by 12 per cent to ₹659, while TRF and Tata Metaliks were down five per cent each at ₹356 and ₹763. Tinplate Company dipped six per cent at ₹318. However, shares of Tata Steel closed flat with a gain of one per cent at ₹104.
Tata Steel Limited is trading 29% from the 52-week high, do you think that this strategic move can help lift its share price?