Aniruddha JainTata Steel Limited, one of India’s largest steel manufacturing companies announced mega internal restructuring of its subsidiaries which will inter-alia usher in consolidation.
Over a period, Tata Steel Limited expanded its operations through greenfield & brownfield acquisitions. Like any other large steel companies, it also grabbed the opportunity of acquiring distressed company under BIFR (Board for Industrial and Financial Reconstruction) & IBC (Insolvency & Bankruptcy Code, 2016). In one of the very first acquisitions under IBC, Tata Steel Limited acquired Bhushan Steel Limited which was later merged with Tata Steel Limited.
These various acquisitions paved the way for Tata Steel Limited to expand its business into value-added products and providing integration to its core business. Finally, in a move to simplify its corporate structure and reduce the number of listed entities, Tats Steel Limited announced a Scheme of Amalgamation which will merge subsidiaries/associates into Tata Steel Limited.
Tata Steel Limited (“TSL” or “Transferee Company”) is primarily engaged in the business of manufacturing steel and offers a broad range of steel products including a portfolio of high value-added downstream products such as hot rolled, cold rolled and coated steel, rebars, wire rods, tubes, and wires. The equity shares of the company are listed on nationwide bourses. The registered office of TSL is located in the state of Maharashtra.
Tata Steel Long Products Limited (“TSLPL” or “Transferor Company-TSLPL”) is primarily engaged in the business of production and marketing of sponge iron, which is a single-end-use (steel making) and a single grade product. It has also one of the largest speciality steel plants in India in the SBQ (special bar quality) segment.TSLPL is the subsidiary of TSL holding 74.91% paid-up equity capital of TSLPL. The equity shares of TSL are listed on nationwide bourses. The registered office of TSLPL is located in the state of Odisha.
The Tinplate Company of India Limited (“TCIL” or “Transferor Company-TCIL”) is primarily engaged in the manufacturing of tinplate, tin-free steel and other related products having its plant located in Jamshedpur, Jharkhand. TCIL is the subsidiary of TSL holding 74.96% paid-up equity capital of TCIL. The equity shares of TCIL are listed on nationwide bourses. The registered office of TCIL is located in the state of West Bengal.
Tata Metalics Limited (“TML” or “Transferor Company-TML”) is primarily engaged in the business of manufacture and sale of pig iron and ductile iron pipes and allied accessories. It has its manufacturing unit at Kharagpur, West BengalTML is the subsidiary of TSL holding 60.01% paid-up equity capital of TML. The equity shares of TML are listed on nationwide bourses. The registered office of TML is located in the state of West Bengal.
TRF Limited (“TRF” or “Transferor Company-TRF”) is primarily engaged in the business of undertaking turnkey projects of material handling for the infrastructure sector and also in production of such material handling equipment. TRF is an associate of TSL holding 34.01% paid-up equity capital of TRF. The equity shares of TRF are listed on nationwide bourses. The registered office of TRF is located in the state of Jharkhand.
The Indian Steel & Wire Products Limited (“ISWPL” or “Transferor Company-ISWPL”) is primarily engaged in the business of manufacture of wire rods, TMT rebars, wires and wire products as an external processing agent of the Transferee Company and manufacturing and direct marketing of welding products, nails, rolls and castings.
ISWPL is the subsidiary of TSL holding 95.01% of the paid-up equity capital of ISWPL. The registered office of ISWPL is located in the state of West Bengal.
Tata Steel Mining Limited (“TSML” or “Transferor Company-TSML”) has its presence in the manufacture of ferrochrome and has its primary facility situated at Anantapur, Athagarh, District Cuttack. Further, through its successful acquisition of Rohit Ferro Tech Limited under the Insolvency and Bankruptcy Code, 2016, it has its manufacturing facility in Jajpur, Odisha and Bishnupur, West Bengal. Along with manufacturing Ferro Chrome, TSML has also pursued the commercial mining of Chrome ore and iron ore and have executed mining leases for three Chromite blocks.
TSMPL is a wholly owned subsidiary of TSL. The registered office of TSMPL is in the state of Odisha.
S & T Mining Company Limited (“STMCL” or “Transferor Company-STMCL”) was engaged, inter alia, in the business of acquiring coal blocks, carrying out exploration, development of mine, extraction and mining of coal from the identified blocks. However, S & T Mining has been non-operational since FY 2018-19.
STMCL is a wholly-owned subsidiary of TSL. The registered office of STMCL is in the state of West Bengal.
The Transaction
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