This Is Why Tata Steel Merger With TRF Has Been Cancelled


Rohit Kulkarni

Rohit Kulkarni

Feb 12, 2024


Following a turnaround in the business performance of its listed associate company TRF, Tata Steel has scrapped its plans for the merger with the same.

This Is Why Tata Steel Merger With TRF Has Been Cancelled

Tata Steel calls off TRF merger

As a plan to broader exercise to streamline its corporate structure, in September 2022, it had decided to merge the material handling equipment manufacturer with itself. Following this it also infused funds in the company, placed orders with TRF in order to help it to navigate the challenging operating environment.

Following this, company saw an increase in its financials and its stock hit the 20% upper circuit on the BSE and closed at the same level at Rs 328. There was also a substantial jump in the trading volume. As per the BSE data, a day’s turnover was nearly 1.6 lakh shares as compared to an average daily volume of about 36,000 shares over the last two-week period.

Metal Flagship Merges its 5 Arms 

Tata Group’s metal flagship had amalgamated five arms within itself, which includes the below

  1. Tata Steel Mining (Turnover – Rs 5,000 crore) 
  2. Tata Steel Long Products (Turnover – Rs 7,464 crore)
  3. Tata Metaliks (Rs 3,260 crore)
  4. Tinplate Company of India (Rs 3,983 crore) 
  5. S&T Mining Company. 

This consolidation has eventually led to a minor dilution of parent Tata Sons’ stake in Tata Steel. As a part of earlier plan, Tata Steel intended to merge 7 businesses into itself, but on Wednesday it was revealed that the merger process of The Indian Steel and Wire Products is in an advanced stage and will be concluded by Q1 FY25. A proposal to merge Bhubaneswar Power and Angul Energy into itself was also proposed.


Rohit Kulkarni
Rohit Kulkarni
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