Tata Steel’s board has approved the merger of its wholly owned subsidiary, Neelachal Ispat Nigam (NINL), with the company, as the steelmaker looks to simplify its structure, improve raw material security and optimise operational costs.
The steel major has also approved an investment of up to $2 billion in T Steel Holdings, a wholly owned foreign subsidiary, by subscribing to its equity shares in one or more tranches from fiscal 2027. Tata Steel will invest around ₹18,488.10 crore in T Steel Holdings (TSHP), which will use these funds to support overseas subsidiaries for their business operations and for repayment or prepayment of existing debt in multiple tranches.
Tata Steel acquired a majority stake in NINL in 2022, resuming operations at the plant later in the year. The company was acquired for ₹12,100 crore.
“The proposed amalgamation will result in a simplification of the existing corporate structure and eliminate administrative duplications, consequently reducing the administrative costs of maintaining separate companies, while reducing multiple legal and regulatory compliances,” Tata Steel said in an exchange filing.
Source: Economic Times