Tata Steel Long invests Rs300 crore in Neelachal Ispat in second tranche

Tata Steel Long Limited informed that it has acquired 4,68,75,000 equity shares of Rs10 each at a premium of Rs54 per share, of Neelachal Ispat Nigam Limited, a subsidiary of the company, for an amount aggregating to Rs300 crore.

This is the Tranche 2 of the investment in the equity shares of NINL.

Neelachal Ispat Nigam Limited operates a 1.1 MTPA integrated iron and steel plant in Kalinganagar, Odisha, as well as iron ore mines with a 90 MT reserve.

The proposed funding will be used to meet the NINL’s initial working capital and Capex requirements, including the start-up of the iron and steel plant in Kalinganagar, the repayment/prepayment of liabilities, and other general corporate purposes.

In 2002, NINL built a 1.1 MTPA blast furnace to produce pig iron. Following that, other supporting facilities such as a sinter plant, a coke oven plant, a power plant, and so on were put into operation.

At around 11.53 AM, Tata Steel Long was trading at Rs641.60, up by 0.86% against previous close of Rs636.20 on NSE. The counter hit intraday high and low of Rs644.35 and Rs634 respectively.

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