Tata Steel acquires Rs 300 crore stake in Neelachal Ispat

23 Feb 2023 , 12:00 PM

Tata Steel Limited has informed that it has acquired 4,68,75,000 equity shares of Neelachal Ispat Nigam Limited for an amount aggregating to Rs 300 crore, being Tranche 1 of the investment in the equity shares of NINL.

The equity shares of Rs10 each has been acquired at a premium of Rs54 each.

Tata Steel Limited’s indirect subsidiary, Neelachal Ispat Nigam Limited (NINL), is an unlisted company.

NINL 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 NINL’s working capital and capex needs, including the start-up of an 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 11.46 AM, Tata Steel was trading 1.21% higher at Rs112.50, against the previous close of Rs111.15 on NSE. The counter touched an intraday high and low of Rs113.65 and Rs111.35 respectively.

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