This article covers two schemes together as both the schemes are identical, with the same appointed date, filed at the same time and having the same Transferee Company. Further, the Transferee Company is loss-making and Transferor Companies are profit-making. Further Tata Steel Ltd is the holding company of all the three companies. Now let us analyse interesting aspects of both the scheme.

Overview of Companies:

Tata Steel Long Products Limited (TSLPL) is a listed company and engaged in the business of production and marketing of sponge iron, which is a single end use (steel making) and a single grade product. It has also one of the largest specialty steel plants in India in the SBQ (special bar quality) segment with an annual capacity of one million tons per annum. On April 9, 2019, TSLPL acquired the steel division of Usha Martin Limited, pursuant to the Business Transfer Agreement (BTA) for total consideration of ₹ 4,525 crore.

The Indian Steel & Wire Products Limited (ISWPL) is engaged in the business of manufacturing wire rods, TMT rebars, wires and wire products as an external processing agent of Tata Steel Limited and also in the manufacturing and direct marketing of welding products, nails, rolls and castings.

Tata Metaliks Limited (TML) is a listed company and engaged in the business of manufacture and sale of pig iron and ductile iron pipes and its allied accessories in its manufacturing plant located at Kharagpur, West Bengal.

The Transaction:

TSLPL filed two separate schemes for amalgamation of the above companies with itself.

  • Scheme 1: Amalgamation of TML with TSLPL.
  • Scheme 2: Amalgamation of ISWPL with TSLPL.
TATA-Steel-Group-Merger-Consolidation-1

Appointed date for the transactions is opening of business hours on April 1, 2020,

Rationale of the Scheme

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