Tata steel zooms ~5% on acquisition of 90% stake in Ceramat

2 Mar 2022 , 12:49 PM

In its press release, Tata Steel Ltd. announced that the company has executed a Share Purchase cum Shareholders’ Agreement (SPSHA) for the acquisition of a 90% equity stake in Ceramic Private Limited (CPL) through its wholly-owned subsidiary TSAML.

Ceramic Private Limited was incorporated on November 2, 2021, for the purpose of advanced ceramics with a primary focus on health care. Mr. Sabyasachi Roy and Mr. Tushar Gothi are the joint promoters of CPL. As of date, the company has not commenced operations.

Tata Steel has concluded Advanced Ceramics as one of the new materials for strategic growth. Within Advanced Ceramics, the preferential sector is in medical materials owing to high growth potential and non-cyclical nature.

Tata Steel strives to setup a world class facility to produce medical materials and use CPL as a special purpose vehicle for this purpose. The facility shall focus on producing Hydroxyapatite — a calcium phosphate-based ceramic which shall be used as bone replacement.

Follwoing this development, Tata Steel’s stock was trading 5.02% higher at around 12.41 PM, at Rs1,282 against its previous closing price of Rs1220.75. It touched the day’s high and low of Rs1,294.40 and Rs1,218.55 respectively.