On Monday, Tata Steel completed the acquisition of 93.71 per cent of Neelachal Ispat Nigam Limited (NINL) through its subsidiary Tata Steel Long Products (TSLP).
TSLP was declared on 31 January, the winning bidder for the one million tonnes (mt) NINL, an asset central and state-owned public sector undertakings, in a process run by the Department of Disinvestment & Public Asset Management (DIPAM), for a consideration of Rs 12,100 crore.
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On Tuesday, the transaction was completed by purchasing equity shares and redeemable preference shares, which are non-convertible.
The transaction has a subscription of over 484 million equity shares aggregating to Rs 3,100 crore by TSLP, non-convertible preference shares have subscribed of 0.01 per cent, which is approximately Rs 4,560.54 crore and purchase of 694 million equity shares by TSLP.
By 2030, Tata Steel has plans to increase the capacity to 40mt in India. As per the company’s statement, the NINL acquisition strengthens its growth plan over the next decades, which provides the enablers to even go beyond the 40 mt targets.