Tata Steel acquires 10% stake in Tata Steel Mining on rights basis; stock adds ~1%

16 Jun 2022 , 09:16 AM

Tata Steel Limited has informed that it acquired 1,04,75,196 equity shares of Rs10 each at a premium of Rs9.15 per share, of Tata Steel Mining Limited, its wholly-owned subsidiary.

The acquisition is for an amount aggregating to approximately Rs20.06 crore. Upon completion of the said acquisition, Tata Steel will continue to be a wholly-owned subsidiary of the Company.

Tata Steel Mining is a key player in the mining and Ferro Alloys business, and a wholly-owned subsidiary of Tata Steel Limited.

TSML is a global provider of raw materials to stainless steel, alloy steel, and refractory manufacturers. It currently operates 3 Chromite mines, 1 ferro-alloy plant and has partnered with 8 external ferro processing centers for the manufacture of ferro chrome.

On completion of the said Transaction, the equity stake of Tata Steel in TSML will remain the same at 100%.

Tata Steel is currently trading at Rs970.40 per piece, up by Rs10.7 or 1.11% from its previous closing of Rs959.70 on the BSE. The scrip opened at Rs970 and has touched a high and low of Rs975 and Rs965.90 respectively.