Tata Steel invests further in subsidiary Tata Steel Mining Ltd

Tata Steel Limited ('Company') has, on April 11, 2022, acquired 32,63,70,757 equity shares of ₹10/- each at a premium of ₹9.15/- per share, of Tata Steel Mining Limited (TSML), a wholly-owned subsidiary of Tata Steel Limited, for an amount aggregating to approximately ₹625 crore (hereinafter referred to as the 'Transaction'). On completion of the above acquisition, Tata Steel Mining Limited will continue to be a wholly-owned subsidiary of the Company.

TSML was incorporated on March 29, 2004. TSML operates 3 Chromite mines, 1 ferro alloy plant and has partnered with 8 external ferro processing centers for manufacture of ferro chrome. TSML provides raw materials to stainless steel, alloy steel and refractory manufacturers across the globe.

TSML had been declared as the successful resolution applicant by the Committee of Creditors for acquisition of Rohit Ferro-Tech Limited ('RFT') on June 5, 2021, under the Corporate Insolvency Resolution Process ('CIRP') of the Insolvency and Bankruptcy Code 2016 ('Code'). Further, pursuant to Section 31(1) of the Code, the Hon'ble National Company Law Tribunal, Kolkata Bench, vide its order dated April 7, 2022, approved the Resolution Plan submitted by TSML for acquisition of RFT.

As part of the funding proposal of TSML towards acquisition of RFT, Tata Steel Limited being the Promoter of TSML has infused approx. ₹625 crore by subscribing towards 32,63,70,757 equity shares of TSML of face value ₹10/- each for a premium of ₹9.15 per share (total ₹19.15 per share). The allotment of equity shares to Tata Steel Limited is on preferential basis.

On completion of the said Transaction, the equity stake of the Company in TSML will remain same at 100%.

Shares of Tata Steel Limited was last trading in BSE at Rs. 1371.10 as compared to the previous close of Rs. 1349.40. The total number of shares traded during the day was 326122 in over 9022 trades.

The stock hit an intraday high of Rs. 1379.70 and intraday low of 1356.80. The net turnover during the day was Rs. 445904479.00.

Source : Equity Bulls

Keywords

TataSteel INE081A01012 Investment TataSteelMining FerroAlloys