Shareholders of Tata Steel Long Products will get 67 shares of Tata Steel for every 10 shares held by them in the former.
The company will subsequently fix the record date for the same. In September 2022, Tata Steel announced plans to merge seven of its subsidiaries, including Tata Steel Long Products.
The amalgamation is aimed at consolidating the business to drive operational efficiencies, business synergies, and simplifying the corporate holding structure.
The board on Wednesday also considered and approved the merger of another wholly-owned subsidiary Bhubaneshwar Power Pvt Ltd, with parent Tata Steel Ltd.
The steelmaker also reported its September quarter earnings on Wednesday, which was quite disappointing, as it posted a consolidated net loss of Rs 6,196 crore.
This was primarily due to restructuring and impairment costs pertaining to the European business. Consolidated revenue for the quarter declined 7% on year to Rs 55,682 crore.
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