Tata Steel Long Products (TSLP) said that it acquired 4,68,75,000 equity shares of Neelanchal Ispat Nigam (NINL), aggregating to Rs 300 crore, being Tranche 2 of the investment in the equity shares of NINL.
NINL is a subsidiary of TSLP. Post acquisition, TSLP's stake in NINL increased to 95.96% from 95.81% earlier.
NINL has a 1.1 mtpa integrated iron and steel plant at Kalinganagar Odisha, along with iron ore mines with a reserve of ~90 MT. Its turnover for the financial year 2021‐22 was Rs 257.58 crore.
The investment will be utilized towards the initial working capital and capex requirement of the NINL including start-up of iron and steel plant at Kalinganagar, repayment/prepayment of liabilities and for other general corporate purposes.
TSLP has presence across the entire value chain of steel manufacturing from mining and processing iron ore to producing and distributing steel based long products. The company also has sponge iron manufacturing facility and captive power plants generating power from waste heat and thermal coal.
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On standalone basis, TSLP reported net loss of Rs 333.36 crore in Q2 FY23 as against net profit of Rs 145.50 crore in Q2 FY22. Net sales rose 16.9% to Rs 1,913 .94 crore in Q2 FY23 compared with Rs 1,637.37 crore in Q2 FY22.
The TSPL scrip rose 0.59% to Rs 640.50 on the BSE.
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