Tata Metaliks shares were locked in upper circuit for the second consecutive session on Wednesday, following its parent's decision to call off the merger plan. Tata Steel on Tuesday said it has decided to drop its plan to merge Tata Metaliks and Tata Metaliks DI Pipes with itself. (Read)
Tata Metaliks would continue to be a subsidiary of Tata Steel, said Tata Steel in a BSE filing yesterday.
"The merger was called off due to the inordinate delay in getting the requisite regulatory and statutory approvals for the merger," said Sanjeev Paul, MD, Tata Metaliks.
Tata Metaliks has come out financial stress it was into two and half years ago, when this merger was announced, he added.
Looking at all of this, it was decided to withdraw this scheme for amalgamation in the interest of all stakeholders and submit another merger scheme of Tata Metaliks and Tata Metaliks Di Pipes, Mr Paul told NDTV Profit.
Tata Metaliks, which is in the business of selling and manufacturing pig iron, is up 44 per cent in the last two sessions.
Imtiyaz Qureshi, co-founder & director of Investeria Financial Services advised investors to buy Tata Metaliks. (Watch)
"The stock is showing good momentum and has given fantastic returns in past few weeks. It can go up to Rs 160 in the next couple of trading sessions," he told NDTV Profit.
Shares of Tata Metaliks ended 19.94 per cent up at Rs 168.40 outperforming the broad market indicator Sensex, which ended 0.27 per cent lower.
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