Kolkata : City-based metal packaging company Tinplate Friday ruled out a merger with Tata Steel anytime soon.
“Any merger or takeover is not something being discussed right now,” managing director Tarun Daga said here at a press conference after announcing the quarterly financial results of the company.
Former managing director B.L. Raina had said in December that parent company Tata Steel would consider a merger.
In March, Tata Steel had increased its stake in the company to 42.88 percent from 30.82 percent in September 2009. Also, the Tata group has increased its aggregate promoters’ stake from 33.11 percent to 45.22 percent.
“The increase in Tata Steel’s stake happened as they had taken up the unsubscribed portion of the rights issue,” Daga said.
The company posted a drop in its January-March 2009-10 profit to Rs.7.40 crore from Rs.21.88 crore during a year-ago period.
“Margins during the period were impacted due to sharp rise in hot rolled coils and tins, our key raw materials,” he said.
The company, which produces cold-rolled products and electrolytic tinplate, is currently setting up its second cold rolling mill at a cost of Rs.458 crore to be commissioned during 2010-11.