Tata Steel announced on January 21 that its Board of Directors has approved the allotment of 8.65 crore fully paid-up equity shares to eligible shareholders of Tinplate Company of India Ltd (TCIL).
The allotment is part of the merger between Tata Steel and Tinplate Company of India, effective from January 15, 2024. The eligible shareholders of TCIL will receive fully paid-up equity shares of Tata Steel in a share exchange ratio of 33:10.
In an exchange filing, Tata Steel said that 33 fully paid-up ordinary equity shares of Tata Steel with a face value of Re 1 each will be allotted for every 10 fully paid-up equity shares of TCIL of Rs 10 face value each.
Of the 8.65 core Tata Steel shares, 18,60,864 fully paid-up equity shares of Tata Steel will be allotted to ‘Tata Steel Limited – Unclaimed Securities – Suspense Escrow Demat Account TSL-TCIL Merger’ maintained with Standard Chartered Bank, Fort Branch, Mumbai.
Tata Steel elaborated that another 17,019 shares will be allotted to ‘TSL-TCIL Fractional Share Entitlement Trust’ managed by Axis Trustee Services Limited.
The Mumbai bench of the National Company Law Tribunal (NCLT) approved the merger of TCIL with Tata Steel on October 20, 2023, and the Kolkata bench approved the Scheme of Amalgamation in an order dated January 1, 2024.