Tata Steel said on Tuesday that it has invested around Rs 54 crore in its wholly-owned subsidiary TSML through the preferential acquisition of additional shares.

TSML will use the funds to meet capital expenditure requirements, a regulatory filing said. Tata Steel has acquired 2,81,98,433 TSML shares at a preferential price of Rs 10 per share. Before the acquisition, Tata Steel held 82,19,17,021 shares in Tata Steel Mining Company Limited (TSML), with a shareholding ratio of 100%. After the acquisition, the steel giant held 85,01,15,454 shares, again reaching 100%.

TSML is in the mining and ferroalloy business, operating three chromite mines and two ferroalloy plants. It produces ferrochromium in partnership with seven external iron machining centres. TSML supplies raw materials to stainless steel, alloy steel and refractory manufacturers worldwide.