Metal sector is going up crazy this is the dip to buy one of the gems there is 7 years consolidation breakout, this is a not to miss stock buy @ 100 - 105
Hi, but i heard there is amalgamation happening of tata steel bsl with tata steel. then wont the stocks of BSL go down and get converted into Tata Steel shares? Please advise.
krishabhshah
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@CJS515, I don't know about this news, but if they do, then TATASTLBSL can get TATASTEEL share in some ratio ut I don't think this will happen.
CJS515
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@krishabhshah, actually we are vendors to the tata group and we received the notice in an email from them that BSL will be merged with tata steel and the ratio of share transfer will be 15:1. If this happens then BSL is over priced in current situation. And below is the the link to an article stating the same. Request you to please tell me if this will really happen or not.
krishabhshah
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@CJS515, TATASTLBSL is a good buy according to fundamental analysis and there will be more value unlocking in the coming years
CJS515
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@krishabhshah, thank you for your input. I will keep a tab
Kamlesh289525
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@CJS515, Merger is not planned anytime soon and 15:1 was proposed in April when BSL value was around 80-85, the ratio depends on the current value of both companies so whenever they plan to merge they should propose and new ratio because they cannot give fewer shares/ value to the share holders of BSL.
CJS515
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@Kamlesh289525, thanks for the input. But i believe the shareholders have given the approval of the merger in February / march 2021.
Kamlesh289525
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@CJS515, Correct but it was approved as per the current market price back then, but now when a merger happens / whenever in the future after a year or so the current market cap and the market price of both shares will be considered and the ratio will be modified ELSE the shareholders will have right to claim their price for holdings from SEBI as per current market price which might lead to another series of issues- TATA as a brand won't let it happen and will make sure the price and evaluation for BSL is done as per the current market price during amalgamation. BSL is a huge CASH cow for TATA STELL and they won't let it down / merge anytime soon with TATA STEEL parent company. Check latest revenue release by BSL on 19th of May
CJS515
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@Kamlesh289525, Great! thanks for the information. I really appreciate it. I was not aware about the technicalities either.