The steel major on Wednesday announced the acquisition of its wholly owned subsidiary Tata Steel Advanced Materials for Rs 14,78,99,994 on 27 December 2022.
The company bought 1,15,45,667 equity shares worth Rs 10 each at an issue price of Rs 12.81 per share. The company now holds 66.75% stake in Tata Steel Advanced Materials (TSAML), while the balance shares are held by Tata Steel Downstream Products, which is also owned by Tata Steel. This indicates that Tata Steel either directly or indirectly owns 100% share of TSAML.On completion of the above acquisition, TSAML will continue to be a wholly owned subsidiary of the company.
Tata Steel said that it has ventured into New Material Business (NMB) in areas such as graphene, composites, and medical materials, among other things. Towards this, TSAML has been identified as the anchor company to pursue business opportunities in NMB.
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tons per annum.
The company reported a 90% drop in consolidated net profit to Rs 1,297 crore in Q2 FY23 from Rs 12,548 crore in Q2 FY22. Total revenue from operations fell marginally, by 1%, to Rs 59,878 crore in the second quarter as compared with the same period last year.
Shares of Tata Steel advanced 0.91% to Rs 110.95 on the BSE.
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