Tata Steel Limited acquires further shares of Tata Steel Advanced Materials Ltd

Tata Steel Limited ('Company') has, on October 28, 2022, acquired 1,56,12,802 equity shares of ₹10/- each at an issue price of ₹12.81 per share (including a premium of ₹2.81 per share), of Tata Steel Advanced Materials Limited ('TSAML'), for an amount aggregating to approximately ₹20 crore (hereinafter referred to as the 'Transaction'). On completion of the above acquisition, TSAML will continue to be a wholly owned subsidiary of the Company.

In Q2FY2021, TSL had transferred its entire stake in TSAML to Tata Steel Downstream Products Limited ('TSDPL'), a wholly owned subsidiary of TSL.

TSL has ventured into New Materials Business ('NMB') in areas of composites, graphene, medical materials amongst others. Towards this, TSAML (wholly owned subsidiary of TSL) has been identified as the anchor company to pursue business opportunities in NMB.

The objective of acquisition is to grow the business of NMB under TSAML, TSL has subscribed for 1,56,12,802 equity shares of TSAML of face value ₹10/- each for a premium of ₹2.81 per share (total ₹12.81 per share) aggregating to approx. ₹20 crore.

On completion of the said Transaction, TSL will directly hold 53.57% of equity stake in TSAML. The remaining 46.43% of equity stake will be held by TSDPL, direct wholly owned subsidiary of TSL.

Source : Equity Bulls

Keywords

TataSteel TataSteelAdvancedMaterials FurtherShares Investment