Tata Steel rises as its arm acquires 90% stake in Rohit Ferro-Tech

Tata Steel is currently trading at Rs. 1340.00, up by 19.45 points or 1.47% from its previous closing of Rs. 1320.55 on the BSE.

tata steel adjudged 2021 supplier engagement leader
tata steel 

The scrip opened at Rs. 1338.80 and has touched a high and low of Rs. 1346.00 and Rs. 1331.80 respectively. So far 72324 shares were traded on the counter.

The BSE group ‘A’ stock of face value Rs. 10 has touched a 52 week high of Rs. 1534.60 on 16-Aug-2021 and a 52 week low of Rs. 849.00 on 13-Apr-2021. Tata Steel

Last one week high and low of the scrip stood at Rs. 1383.85 and Rs. 1296.55 respectively. The current market cap of the company is Rs. 163793.26 crore.

The promoters holding in the company stood at 33.92%, while Institutions and Non-Institutions held 39.57% and 25.71% respectively.

Tata Steel’s unlisted wholly-owned subsidiary — Tata Steel Mining (TSML) has successfully completed the acquisition of controlling stake of 90% in Rohit Ferro-Tech (RFT) in accordance with the approved Resolution Plan under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC).

As per the terms of the Resolution Plan, TSML has funded Rs 617.12 crore for paying the admitted CIRP cost, employee dues, operational creditors and financial creditors as per the provisions of the approved resolution plan. Additionally, 10% of the equity shares of RFT has been issued to the financial creditors of RFT towards part conversion of their loan.

The investment from TSML to RFT has been made through a combination of equity of Rs 10 crore and inter-corporate loan of Rs 607.12 crore. The Company has made equity investment in TSML for financing the acquisition.

Pursuant to the acquisition and in accordance with the approved plan, the nominees of TSML have been appointed on the board of RFT effective April 11, 2022 and the existing directors of RFT ceased to be directors effective April 7, 2022.

Tata Steel, the flagship company of the Tata group, is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 company.

Leave a Comment