Tata Steel acquires shares worth Rs 300 cr in Neelachal Ispat Nigam

Tata Steel acquires shares worth Rs 300 cr in Neelachal Ispat Nigam

The proposed funding will be used towards the working capital and capex requirement of NINL, which includes the start-up of iron and steel plant at Kalinganagar and repayment or prepayment of liabilities.

FPJ Web DeskUpdated: Thursday, February 23, 2023, 11:05 AM IST
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Tata Steel acquires shares worth Rs 300 cr in Neelachal Ispat Nigam | File

Tata Steel on Tuesday acquired 4,68,75,000 equity shares of Rs 10 each at a price of Rs 54 per share of Neelachal Ispat Nigam Limited (NINL), an indirect subsidiary of the company, it announced through an exchange filing. The proposed funding will be used towards the working capital and capex requirements of NINL, which include the start-up of the iron and steel plant at Kalinganagar and the repayment or prepayment of liabilities.

Post the acquisition Tata Steel's stake in the company increased to 5.23 per cent from its earlier 1.88 per cent.

NINL was incorporated on March 27, 1982 to set up an integrated steel plant to undertake manufacturing and sale of steel products. The company initially set up a 1.1 MTPA blast furnace in 2002 to produce pig iron. After this, the company commissioned other supporting facilities like a sinter plant, a power plant, and a sinter plant. Currently NINL has a 1.1 MTPA integrated iron and steel plant at Kalinganagar Odisha with an iron ore mine with a reserve of 90 MT.

In the financial year 2021-22 the company reported a Rs 257.58 crore and in the financial year 2019-20 it reported a Rs 941.07 crore.

Shares of Tata Steel

The shares of Tata Steel on Thursday at 11:02 am were at Rs 112.90, up by 1.57 per cent.

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