Tata Steel is the groups metal flagship, four listed companies and three unlisted entities . Tata Steel will be the only conglomerates metal vertical to remain listed on the stock exchanges .
Mumbai (India): Tata Group chairman N Chandrasekaran is unifying the metal and mining industries under one roof, launching yet another restructuring initiative for the $128 billion multinational conglomerate.Tata Steel is the group's metal flagship, four listed companies and three unlisted entities.He has been merging businesses operating in similar or adjacent sectors in defence, consumer products, and aviation, thus simplifying the groups' corporate structure and rationalizing overall costs.Tata Steel Long Products (owns around 75%), Tinplate Company of India (75%), Tata Metaliks (60%), and TRF (34%) are the four listed companies involved in the merger in which Tata Steel holds the largest interest.In consideration for the resizing, the public shareholders of the four listed companies will receive Tata Steel shares for every ten shares held by them (see chart).After the capital increase, Tata Steel's public shareholding will decrease slightly from its current level of 66%.After the mergers are completed, Tata Steel will be the only conglomerates metal vertical to remain listed on the stock exchanges (Tata Steel also holds a majority interest in Tayo Rolls, but this corporation is in the process of bankruptcy, losing no future value for the metal giant).Chandrasekaran had previously folded Bhushan Steel (which Tata Steel acquired via bankruptcy for Rs 35,200 crore) into a metal flagship. Also, Chatterjee said, it is better to run separate verticals outside of Tata Steel (read managing separate companies), rather than managing separate businesses within the organization.The Tata Group had originally intended to combine Tata Metaliks with Tata Long Products.However, this plan has been dropped, and the conglomerate now plans to merge both companies with Tata Steel.According to the management, the decision to pull the program was made due to significant changes in the business conditions for both companies, which culminated in a dilution of the inherent benefits that were initially envisioned. Tata Steel has eliminated 116 entities (72 subsidiaries have dissipated, 20 associates and joint ventures have been phased out, and 24 companies are currently under liquidation) within its corporate structure since 2019.According to the proposed changes, Tata Metaliks MD Sandeep Kumar and TRF MD Alok Krishna will step down from their positions.Despite Kumar taking up a new role at Tata Steel, Krishna will serve as the MD at Tata Metaliks, and Umesh Singh will be the new MD of TRF.The merger is set to be completed by the end of fiscal 2024, subject to shareholder and court approvals.