Tata Steel Ltd. disclosed that it had invested 740 million rupees in its associate company TRF Ltd. by purchasing non-cumulative, non-convertible, non-participating, redeemable preference shares, via an exchange filing.
In a separate exchange filing, TRF announced that it had approved the allocation of 74 million non-cumulative, non-convertible, non-participating, redeemable preference shares to Tata Steel.
The investment will be used to fund TRF's additional working capital needs, the full or partial repayment of existing debt, including that owed to creditors for its finances or operations, and/or other general corporate goals.
In order to complete projects on a turnkey basis, TRF, a division of the Tata Steel Group, designs and manufactures bulk material handling equipment and systems for industries such as power, ports, steel, mining, and cement.
Tata Steel acquired non-cumulative, non-convertible, non-participating, redeemable preference shares on a private placement basis from TRF on June 8, 2022, for an investment of 1.7 billion rupees.
Shares of Tata Steel traded 0.5% higher at ₹106, while those of TRF traded 0.7% higher at ₹159.75 on NSE at 09:25 IST.
