The steel major on Thursday announced that it has acquired the balance 1.35 crore shares (24.06%) of indirect wholly owned subsidiary, Tata Steel Advanced Materials from wholly owned unit, Tata Steel Downstream Products for Rs 17.33 crore.
In an exchange filing, Tata Steel (TSL) said, the company has acquired the balance 1,35,29,959 equity shares of Rs 10 each, at a premium of Rs 2.81 per share (total Rs 12.81 per share), of Tata Steel Advanced Materials (TSAML), an indirect wholly owned subsidiary of the company, from Tata Steel Downstream Products (TSDPL), a direct wholly owned subsidiary of the company, for an amount aggregating to approximately Rs 17.33 crore.
Prior to the transaction, Tata Steel directly held a 75.94% stake in TSAML and the rest 24.06% was held by TSDPL. Hence, TSL directly and indirectly held 100% equity stake in TSAML.
Consequent to the transaction, the steel maker will directly hold 5,62,23,166 equity shares of face value Rs 10 each of TSAML (100% equity stake). As a result, TSAML will become a direct wholly owned subsidiary of Tata Steel.
In July 2021, Tata Steel had transferred 100% stake in TSAML to TSDPL. Further, during 28 October 2022 through 16 March 2023, TSL has acquired 75.94% of equity stake in TSAML through various share issuances.
Explaining the objectives, the steel major said that it has ventured into new materials business (NMB) in areas of composites, graphene, medical materials amongst others. TSAML has been identified as the anchor company to pursue business opportunities under NMB. In view of the above, it was proposed to acquire entire equity stake in TSAML from TSDPL and make it a direct wholly owned subsidiary of the company.
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 consolidated net loss of Rs 2,502 crore in Q3 FY23 as against a net profit of Rs 9,598 crore in Q3 FY22. Total revenue from operations during the quarter amounted to Rs 57,084 crore, down 6% YoY.
Shares of Tata Steel declined 1.76% to Rs 103 on the BSE.
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