Tata Steel Ltd. has acquired stake worth Rs 7,324.41 crore in T Steel Holdings Pte. The company has acquired 557 crore shares, with a face of $0.157 each, the steelmaker said in an exchange filing on Monday.
After the acquisition, T Steel Holdings will continue to be a wholly owned subsidiary of the Indian steel manufacturer.
In May, the company had said that it will infuse money into its foreign subsidiary by subscribing to its equity shares, and that the company plans to acquire the shares in one or more tranches during this financial year.
Tata Steel will be announcing its first quarter results on July 31 and the company saw best-ever sales in the quarter-ended June.
Earlier this month, the company had said that crude steel production at Tata Steel India had risen 5% year-on-year to 5.25 million tonne. However, the production was lower sequentially due to planned maintenance shutdowns.
The company’s Indian deliveries saw 3% growth to 4.94 million tonne, which according to the company is the best-ever first-quarter sales.
In the fourth quarter, the steel-maker reported a net profit of Rs 555 crore, while revenue was at Rs 58,687 crore. The operating income—or earnings before interest, taxes, depreciation, and amortisation—declined to Rs 6,601 crore, while margin was flat at 11.2%.
Shares of the company closed 0.22% higher at Rs 162.90 apiece, as compared to a 0.02% advance in the NSE Nifty 50.
