Tata Steel Long Products's bid declares winner for Neelachal Ispat Nigam Ltd

Tata Steel Long Products Limited ('TSLPL') has been identified as the winner of the bidding process to acquire a 93.71% equity stake in the 1 million ton per annum Neelachal Ispat Nigam Limited ('NINL') in accordance with the process being run by Department of Disinvestment & Public Asset Management (DIPAM), Government of India.

NINL represents a critical and strategic acquisition for TSLPL with around one million tons per annum of steelmaking capacity, 2500 acres of land for future growth and iron ore reserves of around 100 million tons. NINL will become the core of TSLPL's growth aspirations, as it is intended to not only restart the one million ton steel plant expeditiously but also begin work immediately to build a 4.5 million ton per annum state of the art long products complex in the next few years, and further expand it to 10 million ton per annum by around 2030. As part of the larger Tata Steel ecosystem, the location of the NINL complex presents opportunities to leverage synergies with existing infrastructure, bring to bear best operating practices and expertise in mining as well as project management to create significant value. TSLPL has a clear strategy to build its business across long products, including branded products, downstream solutions and speciality high-end products. The company will benefit from the significant growth in these areas as India builds greater infrastructure and industrialises at pace through the Atmanirbhar Bharat Program of the Government. This investment also reflects the Tata Group's commitment to the state of Odisha and the communities around our operations.

The total consideration of Rs.12,100 Crore reflects the enterprise value (including all recorded liabilities) as part of the acquisition of 93.71% equity stake in NINL. The transaction is scheduled for closure within the next couple of months as per the process timelines announced by DIPAM, Government of India.

Shares of Tata Steel Long Products Limited was last trading in BSE at Rs. 768.85 as compared to the previous close of Rs. 724.00. The total number of shares traded during the day was 79894 in over 5867 trades.

The stock hit an intraday high of Rs. 837.25 and intraday low of 726.05. The net turnover during the day was Rs. 62925826.00.

Source : Equity Bulls

Keywords

TataSteelLongProducts INE674A01014 WinningBidder NeelachalIspatNigam Acquisition