Tata Steel completes acquisition of 90% stake in Rohit Ferro-Tech; infuses Rs617.12 crore

13 Apr 2022 , 09:23 AM

Tata Steel Limited informed that its wholly-owned subsidiary, Tata Steel Mining Limited (TSML) has successfully completed the acquisition of a 90% controlling stake in Rohit Ferro — Tech Limited as per the approved Resolution Plan under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC).

According to the terms of the Resolution Plan, TSML has funded Rs617.12 crore for payment of admitted CIRP cost, operational creditors, employee dues, and financial creditors as per the provision. Additionally, the financial creditors of RFT will get 10% of the equity shares of RFT towards the part conversion of their loan.

TSML invested in RFT through a combination of equity of Rs10 crore and an inter-corporate loan of Rs607.12 crore. The company has made an equity investment in TSML to finance this acquisition.

Pursuant to this acquisition, the nominees of TSML have been appointed to the board of RFT effective April 11, 2022, and the existing directors of RFT ceased to be directors with effect from April 7, 2022.

Tata Steel opened at and is currently trading at Rs1,334.95 up by Rs14.70 or 1.11% from its previous closing of Rs1,320.25 on the NSE.