Tata Steel, the flagship of the Tata group, has acquired more than 90 per cent stake in Tata SSL. Consequently, the Tatas plan to delist the subsidiary from the bourses.
This follows the cash offer made by Tata Steel for acquiring the entire equity of Tata SSL at Rs 27 a share. The cash offer closed on Tuesday.
Earlier this year, Tata Steel had acquired an additional 38.2 per cent stake in Tata SSL, the largest player in steel wires in India, through an open offer which took its total holding in the company to over 83 per cent.
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Through the second offer, which was for the outstanding 16.97 per cent stake in the subsidiary, the company could manage to get another 7 per cent-plus in Tata SSL.
Tata Steel will request the board of Tata SSL to initiate proceedings for de-listing the shares of Tata SSL, a Tata press release here said.
Tata SSL is reported to have exported over 32,000 tonne of steel wires in the last fiscal, earning a foreign exchange of over Rs 62 crore. Last year, the 100,000 tonne per annum cold rolling mill of Tata SSL was transferred to Tata Steel which gave the steel major a presence in western India.
The steel wires company posted a net profit of Rs 3.65 crore on a turnover of Rs 654.57 crore in the last fiscal. It has equity base of Rs 31.67 crore and reserves and surplus of Rs 115.89 crore.