Tata Steel acquires stake in subsidiary Tata Steel Utilities for Rs 58 crore

2 Feb 2023 , 01:01 AM

Tata Steel Limited informed that it has acquired 26,97,674 equity shares of Rs10 each at a premium of Rs 205 per share, of its wholly-owned subsidiary Tata Steel Utilities and Infrastructure Services Limited (TSUISL).

The acquisition is on a rights issue basis for an aggregate amount of Rs58 crore.

On completion of transaction, TSUISL continues to be a wholly-owned subsidiary of the company.

These funds will be used by TSUISL to invest in its step-down subsidiary, Tata Steel Special Economic Zone Limited (TSSEZ), to help TSSEZ repay its existing loans in part, said Tata Steel in its filing with the exchanges.

The transaction was on January 31, 2023. 

Tata Steel Utilities and Infrastructure Services Limited (TSUISL) is Tata Steel Limited’s wholly owned subsidiary. It is involved in town management, power distribution, and real estate.

At around 12.54 AM, Tata Steel was trading at Rs119.70, down by 1.93% against the previous close of Rs122.05 on NSE. The counter touched an intraday high and low of Rs122.50 and Rs118.40 respectively.

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