Tata Steel Long Products on Tuesday freezes on the upper circuit limit after the company successfully carried its offer for sale where parent Tata Steel divested about 4.51 lakh equity shares and brings down its shareholding below 75%.
At around 12.22 pm, Tata Steel Long Products was trading the upper price band of Rs526.55 per piece up Rs47.85 or 10% on Sensex.
In its regulatory filing last week, Tata Steel Long Products said, "We wish to inform you that Tata Steel Limited (“Tata Steel”), Promoter Company, has completed the open market sale of 4,51,000 equity shares of Tata Steel Long Products Limited (the “Company”), during the period November 23, 2020, through November 27, 2020."
With that,
Tata Steel now holds 74.91% (3,37,86,521 equity shares) of the equity share capital of the Company.
Earlier this month, the company informed that Sebi granted Tata Steel the promoter of the company on May 24, 2019, to exceed the maximum permissible non-public shareholding of 75%.
However, to achieve the minimum subscription requirement in the Rights Issue of the Company, Tata Steel is required to reduce its stake below 75%, within 12 months of the increase in stake.
Thereby, Tata Steel divested up to 4,51,000 equity shares of Rs10 each, held by them in the Tata Steel Long Products through an open market.