Tata Steel Completes Purchase of Remaining 24% Stake in Advanced Materials

New Delhi: Tata Steel, one of India's leading Steel companies, announced today that it has completed its acquisition of 1.35 crore shares (24.06%) of an indirect wholly owned subsidiary, Tata Steel Advanced Materials, from another wholly owned unit of the company, Tata Steel Downstream Products. The total cost of the purchase was Rs 17.33 crore.

Tata Steel (TSL) announced in an exchange filing that it has taken over 1,35,29,959 equity shares of Rs 10 each from Tata Steel Advanced Materials (TSAML), an indirect wholly owned subsidiary of the company, at a premium of Rs 2.81 per share (totalling Rs 12.81 per share). The total value of the transaction is approximately Rs 17.33 crore.

Tata Steel has announced that it will become the sole owner of Tata Steel Amalgamated Minerals Limited (TSAML) by purchasing the 24.06% stake held by TSDPL, making TSAML a wholly owned subsidiary of Tata Steel. Prior to this transaction, Tata Steel directly held a 75.94% stake in TSAML, and after this transaction the Steel maker will directly hold 5,62,23,166 equity shares of face value Rs 10 each of TSAML (100% equity stake). This move will allow Tata Steel to strengthen its presence in Brazil's iron ore market as well as enhance its portfolio in the South American country.

Tata Steel made a major move in July 2021, transferring 100% of its stake in TSAML to TSDPL. Then between October 28, 2022, and March 16, 2023, TSL acquired 75.94% of equity stake in TSAML through multiple share issuances.

The Steel major has ventured into a new materials business (NMB), with focus on composites, graphene and medical materials. To pursue business opportunities under this new venture, the company proposed to acquire the entire equity stake in TSAML from TSDPL, making it a direct, wholly owned subsidiary of the company.

Tata Steel Group, one of the world's largest Steel companies, reported a consolidated net loss of Rs 2,502 crore for the third quarter of fiscal year 23. This amounts to a substantial decrease from its Q3 FY22 net profit of Rs 9,598 crore. Total revenue for the quarter came in at Rs 57,084 crore - 6% lower than last year's figures. In response to this news, shares of Tata Steel fell 1.76% on the Bombay Stock Exchange (BSE), closing at Rs 103 per share.