Tata Metaliks shares locked in upper circuit for the second consecutive session on Wednesday following its parent’s decision to call off the merger plan. Tata Steel on Tuesday said that it has decided to drop its plan to merge Tata Metaliks and Tata Metaliks DI Pipes with itself due to delay in regulatory and statutory approvals among other factors.
Reacting to the announcement, shares of Tata Metaliks surged 19.94 per cent to Rs 168.40.
“Committee of Directors approved the proposal of the company to file appropriate application before the Bombay High Court seeking recall of the order dated August 21, 2015 sanctioning the scheme of amalgamation between Tata Metaliks and Tata Metaliks DI Pipes with the company,” Tata Steel said in a regulatory filing.
The scheme was recommended by the committee of directors in April 2013, which was constituted and duly authorised by Board of
Directors, in April 2013 and approved by the members of the company at the court convened meeting in May 2014, it added.
In terms of the scheme, swap ratio of public shareholders was 4 equity shares of Rs 10 each of Tata Steel for every 29 equity shares of Rs 10 each held in Tata Metaliks.
The scheme is currently not effective since the petition filed by Tata Metaliks with the Calcutta High Court for approval of the scheme is pending for disposal.