Tata Metaliks zooms over 40% in two days as merger with Tata Steel calls off

The stock hit a 52-week high of Rs 168, rallied 44% in past two trading sessions from Rs 117 on May 16.

Tata Metaliks is locked in the upper circuit for a second straight day, up 20% at Rs 168, also its 52-week high on the BSE, after the company announced on Tuesday the withdrawal of the scheme of amalgamation of the company and its subsidiary Tata Metaliks DI Pipes with Tata Steel. 

In past two trading sessions, the stock zoomed 44% from Rs 117 quoted on May 16.

Tata Metaliks said that the company is filing for fresh scheme of amalgamation of Tata Metaliks DI Pipes with the company.

The proposed amalgamation is intended to enhance synergies through integrated operational and cost efficiencies, simplified corporate structure and supply chain integration, it added.

Tata Metaliks is engaged in manufacturing, distribution and trading of pig iron and molten metal, while Tata Metaliks DI Pipes engaged in manufacturing, distribution and trading of ductile iron pipes.

The scheme was earlier recommended by the board of directors in April 2013. In terms of the scheme, the swap ratio for public shareholders was 4 shares of Tata Steel for every 29 held in Tata Metaliks.

Till 09:38 am, a combined 205,854 shares changed hands and there were pending buy orders for 2.43 million shares on Tata Metaliks counter.