BackTata Metaliks surges 210% in 20 sessions on back of higher volumes
In morning trade, the stock touched an all-time high of Rs365.05 on the BSE, up 5% from its previous close
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Mumbai: Shares of Tata Metaliks Ltd gained over 210% in just 20 trading sessions, hitting a record high, on the back of higher volumes and parent Tata Steel Ltd calling off a merger with the company.
In morning trade, the stock touched an all-time high of ₹ 365.05 on the BSE, up 5% from its previous close.
At 10am, Tata Steel was trading at ₹ 328.90 on the BSE, down 1.8% from its previous close, while India’s benchmark Sensex fell 0.94% to 26,385.34 points.
The scrip has been hitting the upper circuit since 17 May, except three trading sessions in the period. Since 16 May till date, Tata Metaliks has surged 212% and so far this year, it’s up 259%.
On 18 May, Tata Steel said in a notice to the BSE that it has decided to drop its plan to merge its units Tata Metaliks Ltd and Tata Metaliks DI Pipes Ltd with itself.
The company said in its statement that the scheme is not effective at present. A petition filed by Tata Metaliks seeking an approval to the scheme from the Calcutta high court is pending. “Tata Metaliks has been advised to consider withdrawing the scheme with a leave to re-file a fresh scheme of merger of Tata Metaliks and Tata Metaliks DI Pipes," the statement said.
Tata Metaliks, in a separate statement to the BSE, on Tuesday said its committee of directors has approved filing a fresh scheme to merge Tata Metaliks DI Pipes with itself. Tata Metaliks DI Pipes is a wholly-owned subsidiary of Tata Metaliks Ltd. Tata Metaliks will continue to operate as a subsidiary of Tata Steel Ltd.
On 23 May, the company reported a 71% increase in its consolidated net profit for the March quarter to ₹ 48.62 crore from ₹ 28.43 crore a year ago. Net sales fell 10.1% to ₹ 347.69 crore.
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