Tata Steel’s amalgamation with arm Angul Energy gets NCLT Mumbai bench’s nod

The National Company Law Tribunal’s Mumbai bench has given its nod to the scheme of amalgamation between Tata Steel and its wholly-owned subsidiary Angul Energy.

The merger had already been approved and sanctioned by the NCLT’s Delhi Bench, which has jurisdiction over Angul Energy, through its order dated April 18, 2024, Tata Steel added. Along with the regulatory filing, Tata Steel also enclosed a copy of the order as uploaded on the website of the NCLT, Mumbai Bench.

Shares of Tata Steel gained 1.03% to an intraday high of ₹178.19 on the NSE on Thursday, July 4. The stock traded flat during the day before settling at ₹176.06, up by 0.07% at the end of the session.

Tata Steel, in a separate filing on July 1, had announced that a planned strike by steelworkers at the company’s Port Talbot plant in Wales has been called off. The strike, organised by Unite the Union, was set to commence on July 8 in response to concerns over the plant’s future and investment plans.

Unite the Union decided to halt the strike following assurances of continued investment discussions, the filing added.

Meanwhile, Tata Steel will be among the listed entities that will declare their results for the first quarter of fiscal year 2024-25 in the coming days.

In the preceding January-March 2024 quarter, the steelmaker had reported a significant decline in consolidated net profit, which fell by almost 65% to ₹555 crore, compared to ₹1,566 crore in the same period last year.

The company's revenue from operations also saw a slip, dropping almost 7% to ₹58,687 crore in the March 2024 quarter, down from ₹62,962 crore in the corresponding period of the previous fiscal year.