New Delhi, Feb 10 (PTI) Tata Steel Long Products on Thursday said its board has approved raising up to Rs 13,000 crore through issuance of non-convertible redeemable preference shares on private placement basis to parent firm Tata Steel.
The funds raised would be used to meet the financial requirements to give effect to Tata Steel’s acquisition of Neelachal Ispat Nigam Ltd (NINL).
Tata Steel Long Products is the subsidiary of Tata Steel.
Last month, Tata Steel had announced winning the bid for acquiring a 93.71 per cent stake in Odisha-based NINL for Rs 12,100 crore.
“In order to meet the financial requirements to give effect to the…acquisition, the Board at its meeting held today…considered and approved, inter alia, the proposal of fund raising by way of issuance of unlisted Non-Convertible Redeemable Preference Shares (‘NCRPS) for an amount not exceeding Rs 13,300 crore on a private placement basis, to Tata Steel Ltd,” the company said in a filing to BSE.
The board also approved consequential changes to the Memorandum and Articles of Association of the company and approved convening of the Extra-Ordinary General Meeting of the company on March 7, 2022 for seeking shareholders’ approval on the above proposal, the company said.
Tata Steel on Wednesday said that its arm has accepted a letter of award (LoA) for the acquisition of a 93.71 per cent stake in Neelachal Ispat Nigam Ltd (NINL) and added that the process for the buyout is likely to be completed in the next couple of months.
On February 2, the Department of Investment and Public Asset Management (DIPAM) issued the LoA to Tata Steel Long Products (TSLP) for the acquisition of the 93.71 per cent equity stake of NINL. PTI SID MR MR
