Tata Steel Long Products acquires equity shares in subsidiary Neelachal Ispat Ni

The company has acquired 4,68,75,000 equity shares of ₹10 each at a premium of ₹54 per share. Tata Steel Long Products will own 95.81 per cent of Neelachal Ispat Nigam Limited post this transaction.

The proceeds from the funding will be utilized towards the initial working capital and capex requirement of NINL including start-up of iron and steel plant at Kalinganagar, repayment/prepayment of liabilities and for other general corporate purposes.

Neelachal Ispat Nigam Limited, which is into the manufacturing of Iron and Steel business, has a 1.1 mtpa integrated iron and steel plant at Kalinganagar Odisha, along with iron ore mines with a reserve of 90 MT. The company posted consolidated profit of ₹257.58 for FY21-22.

Tata group in July has completed the acquisition of 93.71 per cent in Neelachal Ispat Nigam Limited (NINL) through its listed step-down subsidiary, Tata Steel Long Products (TSLP).

On January 31, TSLP was declared the winning bidder for the one million tonne (mt) NINL, an asset owned by central and state public sector undertakings, in a process run by the Department of Disinvestment & Public Asset Management (DIPAM), for a consideration of ₹12,100 crore.

Neelachal Ispat, which makes pig iron and billets, was a joint venture of four central public sector enterprises, including Metals and Minerals Trading Corp, Ltd (49.78%), National Mineral Development Corp. (10.10%), Bharat Heavy Electricals Ltd (.68%), MECON Ltd (0.68%), Odisha Mining Corp. (20.47%) and Industrial Promotion and Investment Corp. of Odisha (12%). The remaining stake is held by banks and insurance companies.The remaining stake is held by banks and insurance companies.