Tata Steel on Wednesday announced that it has acquired shares amounting to ₹300 crore in Neelachal Ispat Nigam Ltd, which is an indirect subsidiary of the company.
Tata Steel on February 21, 2023, has subscribed to 4,68,75,000 equity shares of Rs10 each at a premium of ₹54 per share, amounting to ₹300 crore, which is the Tranche 1 investment by it in Neelachal Ispat Nigam Ltd
“On February 21, 2023, the Company has acquired 4,68,75,000 equity shares of face value of ₹10 each at a premium of ₹54 per share of NINL for an aggregate value of ₹300 crore, being Tranche 1 of the investment in the equity shares of NINL.,” said the company in its regulatory filing.
The funding will be utilized towards the working capital and capex requirement of NINL including start-up of iron and steel plant at Kalinganagar, repayment or prepayment of liabilities and for other general corporate purposes.
Post the acquisition, Tata Steel’s shareholding in Neelachal Ispat Nigam Ltd increased to 5.23 per cent from 1.88 per cent.
NINL has a 1.1 MTPA integrated iron and steel plant at Kalinganagar Odisha, along with iron ore mines with a reserve of 90 MT. It had a turnover of ₹257.58 crore in FY 2021-22.
Tata group in July last year had completed the acquisition of 93.71 per cent in Neelachal Ispat Nigam Limited (NINL) through its listed step-down subsidiary, Tata Steel Long Products.
Tata Steel Long Products. was declared the winning bidder for the one million tonne (mt) NINL, an asset owned by central and state public sector undertakings, in a process run by the Department of Disinvestment & Public Asset Management (DIPAM), for consideration of ₹12,100 crore.
The company’s scrip was down 1.81 per cent at ₹111.15 on BSE.
