One of India’s largest steel producers, Tata Steel, has announced that it will merge all the metals companies of the Tata Group into itself. Under the plan, the following companies will be merged into Tata Steel:

In addition, private companies such as Tata Steel Mining, S&T Mining Company and Indian Steel & Wire Products will also participate in the merger.

The plan is still subject to the approval of all the major shareholders of the companies involved, the market regulator SEBI and the stock exchange, and other applicable bodies.

The move also puts the spotlight on TRF, whose recent share price action has been the subject of several discussions.

Shares of TRF doubled in six trading days from September 13 to 20. The company attributed the change to the stock’s removal from Phase 3 of the tiered surveillance measures, under which trading in the stock can only occur weekly.

As of March 31, 2022, TRF had a net worth of negative Rs 294 crore. Since September 13, TRF’s stock has been locked at 20% (twice), 10% (thrice) and 5% (thrice) in the upper circuit, according to revisions to the stock circuit filter.

Through the merger, Tata aims to focus on growth, operational efficiency and business synergies. “In addition, the resulting corporate holding structure will bring greater flexibility to the combined entity’s business ecosystem,” the company wrote in an exchange filing.