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Amid amalgamation announcement of Tata Group metal companies into the parent company, Tata Steel emerged as the top gainer on both Nifty50 and Sensex in early trade on Friday.
Tata Steel share price jumped 4.1% to Rs 107.90 per share on the National Stock Exchange (NSE) in early trade on Friday amid merger news.
However, companies which are to be merged fell up to 10% responding to the merger update. Tata Steel Long products declined around 10%, Tin Plate share price dropped over seven per cent to Rs 316.80 a share, Tata Metaliks fell around 4% in BSE intraday trade on Friday.
Tata Steel was also the volume topper on the BSE with total tradable quantity of 30,76,802 shares worth Rs 32.63 crore in early trade.
Earlier, in the pre-open, Tata Steel witnessed block deal with the Tata Group seeing 14 lakh shares exchanging hands before the market opening.
Reacting to the development, market expert Siddharth Sedani said it will give the Tata Group company a huge advantage as aluminum, zinc and other business will also fall under its ambit.
He recommended a buy on Tata Steel with a target price of Rs 135-40 in one year.
Earlier, Tata Steel said that the proposed amalgamation is aimed at driving synergies, simplifying the group holding and management structure, and consolidating and strategically growing downstream operations and engineering capabilities.
In an change filing on Thursday, September 22, Tata Steel said following companies will be merged into Tata Steel
1. Tata Steel Long Products Limited (‘TSLP-Transferor Company’) into and with its parent company, Tata Steel Limited (‘Transferee Company’).
2. The Tinplate Company of India Limited (‘TCIL-Transferor Company’) into and with its parent company, Tata Steel Limited (‘Transferee Company’).
3. Tata Metaliks Limited (‘TML-Transferor Company’) into and with its parent company, Tata Steel Limited (‘Transferee Company’).
4. TRF Limited (‘TRF-Transferor Company’) into and with Tata Steel Limited (‘Transferee Company’).
5. The Indian Steel & Wire Products Limited (‘ISWP-Transferor Company’) into and with its parent company, Tata Steel Limited (‘Transferee Company’).
6. Tata Steel Mining Limited (‘TSML-Transferor Company’) into and with its parent company, Tata Steel Limited (‘Transferee Company’); and
7. S & T Mining Company Limited (‘S & T Mining-Transferor Company’) into and with its parent company, Tata Steel Limited (‘Transferee Company’)
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