Shares of engineering and infrastructure company clocked 20 percent upper circuit in Wednesday’s trading session after Tata Group decided to cancel the merger with Tata Steel. In one year, the shares have delivered 97 percent returns to its shareholders.
With a market capitalisation of Rs. 361 crores, the shares of TRF Ltd started Wednesday’s trading session on a higher note at Rs. 275.95 compared to its previous close of Rs. 273.10. Within a few minutes of the opening bell, the shares clocked 20 percent upper circuit at Rs. 327.70, also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that the Board of Directors had decided not to proceed with the scheme of amalgamation with Tata Steel as the last few quarters have seen business performance improve.
Furthermore, it also highlighted support from Tata Steel( Parent Company) in the form of placement of orders and infusion of capital which helped them to enhance debtor collections, cost and asset optimization.
In concurrence with the decision of the Board, the Board of Directors of Tata Steel has also consented to the withdrawal of the Scheme and an application to withdraw the Scheme has been filed with the Hon’ble National Company Law Tribunal (‘NCLT’).
In September 2022, Tata Steel announced the merger of all metal companies of the Tata Group with itself, under which, companies like Tata Steel Long Products, Tinplate, Tata Metaliks, TRF and two unlisted companies were to be merged with Tata Steel.
Looking at the consolidated financial statements of TRF Ltd, the revenue increased by 15 percent from Rs. 34 crores during the June quarter to Rs. 39 crores during the September quarter. In addition, the company doubled their net profits from Rs. 9 crores to Rs. 18 crores during the same period. Moreover, the company is set to announce their October to December results on 12 February 2024.
According to the latest shareholding pattern, Promoters, i.e., Tata Group hold 34.12 percent stakes and the remaining 65.85 percent shares are with the Retail Investors.
Headquartered in Jharkhand, TRF Ltd was incorporated in 1962. The company undertakes turnkey projects of material handling for the infrastructure sector and is engaged in the production of such material handling equipment along with providing services relating to design and engineering, supervision, etc.
Written By Vaibhav Patil
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