Tata Steel Acquires ₹10,727 Crore Stake in TSHP

26 Feb 2025 , 04:32 PM

Tata Steel bought 78.85 million ordinary equity shares from its wholly owned subsidiary, T Steel Holdings Pte Ltd (TSHP) for $1.24 billion (about ₹10,727 crore). This investment, made on February 25, 2025, was used to repay external debt in Tata Steel’s offshore subsidiaries as well as to support the restructuring of Tata Steel UK Ltd.

TSHP was set up in Singapore in 2006, and is the holding company for Tata Steel’s operations outside India. Tata Steel, already a wholly owned subsidiary, needed RBI approval for the investment because it clogged the over $1 billion mark in the previous financial year under the automatic path for foreign investments.

TSHP was also picked up by Tata Steel on February 20, 2025 with 191.08 crore equity shares for $300 million (₹2,603.16 crore). Tata Steel turned around with a net profit of ₹295.5 crore for the latest quarter.

The company’s net profit fell 43.4% against ₹522 crore in the same quarter last year. For the quarter, Tata Steel posted an exceptional loss of ₹126.2 crore, a marked improvement over the ₹334.13 crore loss in the same quarter a year ago. Operating revenue was ₹53,648.3 crore, down 3% from ₹55,312 crore a year earlier.