Tata Steel on Wednesday announced the acquisition of its wholly owned subsidiary Tata Steel Advanced Materials Limited for Rs 14,78,99,994 on December 27, through an exchange filing.
The company bought 1,15,45,667 equity shares worth Rs 10 each at an issue price of Rs 12.81 per share. The company now holds 66.75 per cent stake in TSAML, while the balance shares are held by Tata Steel Downstream Products Limited, which is a company owned by Tata Steel. This indicates that Tata Steel either directly or indirectly owns 100 per cent share of TSAML.
Despite the acquisition by Tata Steel, TSAML will continue to be its wholly owned subsidiary.
Why did Tata Steel acquire the shares?
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In the exchange filing, Tata Steel said that it has ventured into New Material Business (NMB) in areas such as graphene, composites, and medical materials, among other things. For this TSAML, which was incorporated on July 22, 2012, is considered an anchor company.
Share price
On Wednesday, the share of Tata Steel Limited closed at Rs 110.20, down by 0.85 per cent.
