Tata Steel is close to buying out the entire equity stake of the Orissa government in Ipitata Refractories.
Tisco managing director J J Irani told newspersons in Calcutta: The price negotiations with the state government are in full swing and we hope to finalise the deal soon.
Ipitata Refractories is a joint-sector company in which the Tatas and the state government have an equal stakes of 40 per cent each.
Irani, however, refused to divulge the share price at which Tata Steel wanted to pick up.
The companys long-term plans are to merge Ipitata Refractories with another Tata and Iron Steel Company subsidiary Tata Refractories.
There is absolutely no reason why two group companies will remain in the same line of business, a senior official explained.
Ipitata Refractories specialises in the manufacture of specialised refractories mainly for glass, cement and aluminium industries. The company, with a share capital of Rs 2.3 crore, had recorded a net profit of Rs 34 lakh during 1995-96.
The company, which was earlier referred to the Board of Industrial & Financial Reconstruction (BIFR), has showed a positive net worth and recorded a turnover of Rs 19.31 crore during the year.
Tata Refractories, on the other hand, is a leading producer of sophisticated refractory items and speciality products.
The Tisco subsidiary has a share capital of Rs 11 crore.
