Tata Steel approves allotment of 8.65 crore shares to eligible shareholders of TCIL
Tata Steel on Sunday announced that the board of the company has approved the allotment of 8.65 crore shares to eligible shareholders of Tinplate Company of India as of the record date of 19 January. The approval comes days after the merger between Tata Steel and Tinplate Company of India became operative on 15 January.
In a regulatory filing, Tata Steel said that the eligible shareholders of Tinplate Company of India will receive fully paid-up equity shares of Tata Steel in the share exchange ratio of 33:10. It means 33 fully paid-up ordinary equity shares of Tata Steel with a face value of ₹1 each to be allotted for every 10 fully paid-up equity shares of TCIL of face value ₹10 each, the company said.
While elaborating on the scheme of allotment, Tata Steel said, “17,019 fully paid-up equity shares of Tata Steel of face value ₹1/- each, allotted to ‘TSL-TCIL Fractional Share Entitlement Trust’ (managed by Axis Trustee Services Limited), towards fractional entitlements of eligible shareholders of TCIL with all additions or accretions thereto in trust, for the benefit of shareholders of TCIL, during the process of allotment of shares as per the Share Exchange Ratio of 33:10 as provided in the Scheme of Amalgamation.”
“18,60,864 fully paid-up equity shares of Tata Steel of face value ₹1/- each, allotted to ‘Tata Steel Limited – Unclaimed Securities – Suspense Escrow Demat Account TSL-TCIL Merger’ maintained with Standard Chartered Bank, Fort Branch, Mumbai, representing in aggregate the equity shares of eligible shareholders of TCIL holding equity shares in physical form as on the Record Date and whose individual demat account details are yet to be made available to the Company as on the date of allotment,” the company added.
Tata Steel-TCIL Merger
The merger of Tinplate Company of India (TCIL) with Tata Steel is seen as a strategic move by Tata Steel to streamline its operations and enhance the performance of the tinplate division of the company. Tata Steel has also decided to form a Tinplate Division Business Council which comprises of 17 members to oversee the operations of the tinplate division.
The shares of Tata Steel closed 2.21% up on Saturday closing at ₹133.9 apiece
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Published: 21 Jan 2024, 02:59 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.