Tata firm to shift registered office from Odisha to West Bengal, change name

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Published: April 19, 2019 12:32:01 AM

In a major move, Tata Steel subsidiary Tata Sponge Iron on Thursday said its board has approved shifting of the company’s registered office from Odisha to West Bengal and changing its name to Tata Steel Long Products or such other name.

Tata firm to shift registered office from Odisha to West Bengal, change nameTata firm to shift registered office from Odisha to West Bengal, change name

In a major move, Tata Steel subsidiary Tata Sponge Iron on Thursday said its board has approved shifting of the company’s registered office from Odisha to West Bengal and changing its name to Tata Steel Long Products or such other name.

Significantly, the company, wherein Tata Steel holds 54.5% shareholding, took this major decision on shifting its registered office along with changing its name after it had taken over the steel business of Kolkata-based Usha Martin earlier this month.

The acquisition would help the company, which had been a major producer of sponge iron, diversify beyond sponge iron business and enter into steel business with a focus of speciality long products portfolio.

Shifting of Tata Sponge Iron’s registered office from Odisha’s Keonjhar to West Bengal would be a welcome development for the Trinamool Congress-ruled state. After Tata Global Beverages, Tata Metaliks and Tinplate Company of India (TCIL), it would be the fourth Tata company whose registered office would be in Bengal.

In a BSE filing, Tata Sponge Iron said its board on Thursday approved the shifting of the registered office of the company to West Bengal, subject to the approval of the members of the company and other regulatory authorities, as may be applicable and consequent amendment in the Registered Office clause of the Memorandum of Association. The company’s 36th Annual General Meeting (AGM) of its members is scheduled to take place on July 15 at Joda in Odisha’s Keonjhar district.

In the stock exchange filing, the company also said its board approved the change in its name to “Tata Steel Long Products Limited” or such other name, as may be approved by the Registrar of Companies, subject to the approval of the members of the company and other regulatory authorities, as may be applicable and consequent amendment in name clause of Memorandum of Association.

Notably, Tata Sponge Iron completed the acquisition of the steel business of Usha Martin on April 9 with payment of cash consideration of `3,468.63 crore (after adjustments for negative working capital and hold backs, pending transfer of some assets including mines and certain land parcels). UML’s steel business includes one-million-tonne steel alloy manufacturing plant near Jamshedpur in Jharkhand, an operative iron ore mine, a coal mine under development and captive power plants.

Tata Steel had executed definitive agreements with the Kolkata-based company in September last year for the acquisition of the latter’s steel business. The Competition Commission of India (CCI) had in December approved the acquisition.

Tata Sponge Iron’s net profit for the fourth quarter ended March 31 stood at `24.39 crore, down 47.76% year-on-year. During the March quarter this fiscal, its revenue from operations, however, grew 4.34% year-on-year at `254.07 crore.

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