Tata Steel acquires 90% equity shares in Ceramat through step-down subsidiary Tata Steel Advanced Materials; Stock gains over 1%

17 Mar 2022 , 09:15 AM

Tata Steel Advanced Materials Limited (TSAML), a step-down subsidiary of Tata Steel Limited on March 16, 2022, has completed the acquisition of 90% equity shares in Ceramat Private Limited (CPL) for Rs90,000. TSAML and Ceramat had executed a Share Purchase cum Shareholders’ Agreement on February 28, 2022.

CPL was incorporated on November 2, 2021, for the purpose of advanced ceramics with health care focus. CPL is jointly promoted by Sabyasachi Roy and Tushar Gothi. Sabyasachi Roy is a ceramic technologist and an entrepreneur and Tushar Gothi has been associated with ceramic business for 16 years. CPL has not commenced operations.

During early trade on Thursday, Tata Steel Ltd was trading at Rs1,281.55 per piece up by Rs16.35 or 1.29% from its previous closing of Rs1,265.20 per piece on the BSE.

“Tata Steel Limited has identified Advanced Ceramics as one of the new materials for strategic growth. Within Advanced Ceramics, the first sector of choice is in medical materials owing to high growth potential and non-cyclical nature. Tata Steel Limited aspires to setup a world class facility to produce medical materials and use CPL as a special purpose vehicle for this purpose.

The facility shall focus on producing Hydroxyapatite — a calcium phosphate-based ceramic used as bone replacement. The promoter of CPL are amongst the very few with such proven capability,” company had said in its filing on March 1, 2022.