M&A

M&A

Tata Steel acquires shares worth Rs.300-Cr in Neelachal Ispat; ups stake to 5.23%

BSE Announcement  

Publicly listed Tata Steel has invested INR 300 crore in Bhubaneswar-headquartered Neelachal Ispat Nigam Ltd (NINL), which is an indirect subsidiary of the company. Tata Steel has subscribed to 4,68,75,000 equity shares of INR 10 each at a premium of INR 54 per share, amounting to INR 300 crore, which is the Tranche 1 investment by it in NINL. Post the acquisition, Tata Steel's shareholding in NINL increased to 5.23 % from 1.88 %. The funding will be used towards the working capital and capex requirement of NINL including starting an iron and steel plant at Kalinganagar and repayment or prepayment of liabilities. NINL has a 1.1 MTPA integrated iron and steel plant at Kalinganagar Odisha, along with iron ore mines with a reserve of 90 MT. It had reported a turnover of INR 257.58 crore for FY22.

From the Venture Intelligence M&A Deals Database: In Jan 2022, Tata Steel Long Products Ltd (TSLPL, formerly Tata Sponge Iron Ltd and a subsidiary of Tata Steel) had acquired a 93.71% equity stake for INR 12,100 crore in NINL.