REG - Tata Steel Limited - Acquisition of 10,00,00,000 – 0.01% NCRPS of TSLP

TATA SteelAnnouncement

17/03/2022 17:00

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RNS Number : 1943F  Tata Steel Limited  17 March 2022

March 17, 2022

 

London Stock Exchange

London

 

Dear Sir, Madam,

 

Sub: Acquisition of 10,00,00,000 - 0.01% Non-Convertible Redeemable Preference
Shares of Tata Steel Long Products Limited, aggregating to ₹1,000 crore

 

This is to inform you that Tata Steel Limited has today, i.e., March 17, 2022,
acquired 10,00,00,000 - 0.01% Non-Convertible Redeemable Preference Shares
('NCRPS') of face value ₹100/- each of Tata Steel Long Products Limited,
aggregating to ₹1,000 crore

('Tranche 1').

 

The details of the acquisition are given in Annexure A.

 

This disclosure is made in compliance with Regulation 30 of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended.

 

This is for your information and records.

 

 

ANNEXURE A

 

 SN      Particulars                                                                      Details
 1.      Name of the target entity, details in brief such as size, turnover etc.          Tata Steel Long Products Limited ('TSLP')

                                                                                          TSLP is a listed subsidiary of Tata Steel Limited ('Company') and forms part
                                                                                          of the Tata Steel Group. TSLP is one of the largest specialty steel plants in
                                                                                          India with an annual capacity of 1 million tonne per annum. From being a
                                                                                          Direct Reduced Iron manufacturer, the Company has become one of the leading
                                                                                          players in the field of Long Products with commercial presence across

                                                                                          India. The Company, being the Promoter Company, holds 74.91% shareholding in
                                                                                          TSLP as on date.

                                                                                          The turnover/revenue of TSLP for previous 3 financial years is as follows:

                                                                                          FY2020-21: ₹4,749.87 crore

                                                                                          FY2019-20: ₹3,489.99 crore

                                                                                          FY2018-19: ₹992.05 crore
 2.      Whether the acquisition would fall within related party transaction(s) and       TSLP is a listed subsidiary of Tata Steel Limited.
         whether the promoter/promoter group/ group companies have any interest in the

         entity being acquired?                                                           Tata Steel Limited, being the Promoter Company, holds 74.91% shareholding in

                                                                                TSLP as on date.
         If yes, nature of interest and details thereof and whether the same is done at

         "arm's length"                                                                   The allotment is in compliance with applicable laws.
 3.      Industry to which the entity being acquired belongs                              Manufacturing of steel and Sponge Iron (DRI)
 4.      Objects and effects of acquisition (including but not limited to, disclosure     The NCRPS are being acquired to assist TSLP in funding its growth plans
         of reasons for acquisition of target entity, if its business is outside the      including the acquisition of and/or subscription to shares of Neelachal Ispat
         main line of business of the listed entity)                                      Nigam Limited or any other company, repayment/prepayment of any indebtedness
                                                                                          including financial or operational creditors of TSLP and/or its subsidiary,
                                                                                          lending to any subsidiary of TSLP and/or for general corporate purposes.
 5.      Brief details of any governmental or regulatory approvals required for the       NA
         acquisition
 6.      Indicative time period for completion of the acquisition                         Tata Steel Limited has today, i.e., March 17, 2022, acquired 10,00,00,000 -
                                                                                          0.01% NCRPS of face value of ₹100/- each for an aggregate value of ₹1,000
                                                                                          crore (Tranche 1).
 7.      Nature of consideration - whether cash consideration or share swap and details   Cash
         of the same
 8.      Cost of acquisition or the price at which the shares are acquired                10,00,00,000 - 0.01% NCRPS of face value of ₹100 each aggregating to
                                                                                          ₹1,000 crore has been allotted to Tata Steel Limited on private placement
                                                                                          basis.
 9.      Percentage of shareholding / control acquired and / or number of shares          At present, Tata Steel Limited holds 3,37,86,521 equity shares of face value
         acquired                                                                         of ₹10 each aggregating to 74.91% of the equity capital of TSLP.

                                                                                          With the above-mentioned acquisition, Tata Steel Limited will hold
                                                                                          10,00,00,000 - 0.01% NCRPS representing 100% of the preference share capital
                                                                                          of TSLP. The voting rights of Tata Steel Limited as a preference shareholder
                                                                                          of TSLP will be as per the provisions of the Companies Act, 2013 read with the
                                                                                          Articles of Association of TSLP.
 10.     Brief background about the entity acquired in terms of products/line of          TSLP, was incorporated on July 31, 1982 and is one of the leading
         business acquired, date of incorporation, history of last 3 years turnover,      manufacturers of specialty steel in the Country. TSLP has its manufacturing
         country in which the acquired entity has presence and any other significant      plants in Joda, Odisha, and Gamharia, Jharkhand located near India's richest
         information                                                                      iron ore reserves and is well connected with roadways and railways, enabling

(in brief);                                                                     it to seamlessly cater to different stakeholders.

                                                                                          As of March 31, 2021, the production capacity of TSLP is as follows:

                                                                                          Sponge iron (DRI) - 1 MTPA

                                                                                          Crude Steel - 1 MTPA

                                                                                          The turnover/revenue of TSLP for the last three financial years are as below:

                                                                                          FY2020-21: ₹4,749.87 crore

                                                                                          FY2019-20: ₹3,489.99 crore

                                                                                          FY2018-19: ₹992.05 crore

 
 

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