Open offers may polish Tinplate, Tata Sponge

The stocks of Tinplate and Tata Sponge Iron will see buying activity this week as Tata Steel is making an open offer to the shareholders of these companies. Steel major offers to buy 14 per cent stake (1.46 crore shares) from Tinplate public shareholders at Rs 60 a share, which is at a 28 per cent premium to the Friday's closing price of Rs 46.8. For Tata Sponge shareholders, the company offers Rs 375 a share, which is at a 18 per cent premium over the Friday's closing price of Rs 306.55. The company, however, did not mention when the offer would be opened, but said the details of the offer would be made through a public statement on or before June 22. Though these open offers will not trigger delisting threshold, hopes in the trading circle could keep these stocks active for sometime. The Tata Steel stock, however, will see some pressure as it is offering hefty premium to buy the stake in those companies' shareholders.