Tata Steel, India’s largest steel producer, recently announced the purchase of Rs 300 crore in shares in Neelachal Ispat Nigam Ltd (NINL), an indirect subsidiary. This investment is part of a larger plan to boost Tata Steel’s reputation in the steel industry. And help NINL grow. Tata Steel invested a total of Rs 300 crore on February 21, 2023, by subscribing to 4,687,500 equity shares worth $10 each at a premium of $54. NINL will use the money to cover its working capital and capital expenditure needs. Including the startup of a steel plant in Kalinganagar, the repayment or prepayment of liabilities, and other general corporate objectives.
Tata Steel’s ownership of NINL increased from 1.88 percent to 5.23 percent because of this acquisition. With a 90 million tonne reserve of iron ore and an integrated iron and steel plant that produces 1.1 million metric tones annually at Kalinganagar, Odisha, NINL had a revenue of 257.58 crore in the fiscal year 2021–22. This investment is a component of Tata Steel’s larger NINL acquisition plan. Through its listed step-down subsidiary, Tata Steel Long Products, the Tata Group successfully acquired 93.71% of Neelachal Ispat Nigam Limited (NINL) in July 2022 for a price of Rs. 12,100 crore. This acquisition will help Tata Steel’s operations in India grow and expand. National and state public sector undertakings own NINL as a resource.
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Tata Steel is dedicated in expanding and developing the steel sector in India. It is constantly looking for ways to grow its business and solidify its position in the industry. Tata Steel has positioned itself well to seize new opportunities. And keep accelerating industry growth thanks to its most recent investment in NINL.
