Tata Group is merging four listed companies and three unlisted entities with Tata Steel . Tata Steel will be the only Tata Steel company in the Tata Groups metal vertical to remain listed on stock exchanges .
MUMBAI (MUMBAI): The Tata Group is integrating the domestic steel industry with seven other companies under one roof.In an attempt to streamline corporate structure and consolidate operations in similar business lines, the conglomerate will merge four listed companies and three unlisted entities with Tata Steel, its flagship unit.Tata Steel Long Products (in which Tata Steel holds about 75%), Tinplate Company of India (in which Tata Steel holds almost 75%), Tata Metaliks (60%), and TRF (34%) are the four listed companies on the market.The three unlisted companies are The Indian Steel & Wire Products (in which Tata Steel has a 95% stake), Tata Steel Manufacturing (100%) and S & T Mining (100%).For every ten shares held by Tinplates, it will also allot 33 shares to Tinplates' public shareholders.For every ten shares held by Tata Metaliks non-promoter shareholders, Tata Steel would issue 79 shares to non-promoter shareholders.For every ten shares held by TRFs public shareholders, it will issue 17 shares to them.Following the share allocation, Tata Steel's public interest will increase marginally from its current level of 66%. Tata Metaliks and Tata Long Products were earlier announced by the Tata Group.However, this plan has been rejected, with the conglomerate now planning to merge Tata Long Products and Tata Metaliks with Tata Steel.Tata Metaliks MD Sandeep Kumar and TRF MD Alok Krishna will step down from their positions following the proposed changes.Both will have new roles at Tata Steel. This has enabled the company to reduce costs.Tata Coffee has joined Tata Consumer, which previously sold the salt and branded lentils business to Tata Chemicals, and has grouped the defense and aerospace industries under one roof.