Tata Steel board approves merger of Bamnipal Steel & Tata Steel BSL

Kolkata: Tata Steel board has approved the merger of Bamnipal Steel and Tata Steel BSL (formerly Bhushan Steel Ltd) into the company.

The board has recommended a merger ratio of one equity share of Rs 10 each of Tata Steel for every 15 shares of Rs 2 each of Tata Steel BSL. As part of the scheme, the equity shares held by Bamnipal Steel and preference shares of held by Tata Steel in Tata Steel BSL shall stand cancelled.

The merger is subject to shareholders and other regulatory approvals, an official statement said on Thursday. Bamnipal Steel, a wholly owned subsidiary of Tata Steel completed the acquisition of Tata Steel BSL on May 18, 2018 through Corporate Insolvency Resolution Process under IBC. The board of Tata steel and Tata steel BSL proposed a merger of both the companies in the interest of maximising value to all stakeholders, the statement added.


Tata Steel CEO & MD, T V Narendran said: “The proposed merger will accelerate operational synergies, reduce the regulatory burden and simplify the group structure.” Both boards have relied on valuation reports and fairness opinions provided by independent experts and recommend a merger ratio of 15 shares of Tata steel BSL for every one share of Tata Steel, the official statement said.