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Tata Steel has shared about the acquisition of a stake worth Rs 7,324.41 crore in its wholly owned subsidiary, T Steel Holdings Pte. The company has acquired 557 crore shares, each with a face value of USD 0.157, according to an exchange filing on Monday.
This move follows Tata Steel's earlier statement in May, where the company indicated its intention to infuse capital into its foreign subsidiary by subscribing to its equity shares. The acquisition of these shares is planned to occur in one or more tranches over the current financial year.
Tata Steel is set to announce its first quarter results on 31 July, with the company reporting record-breaking sales for the quarter ending June. Despite a 5 per cent year-on-year increase in crude steel production to 5.25 million tonnes, sequential production saw a dip due to planned maintenance shutdowns. The company's Indian deliveries grew by 3 per cent.
In the fourth quarter of the previous financial year, Tata Steel reported a net profit of Rs 555 crore, with revenue at Rs 58,687 crore. The operating income, measured as earnings before interest, taxes, depreciation, and amortisation, declined to Rs 6,601 crore, maintaining a flat margin at 11.2 per cent.
This strategic investment in T Steel Holdings Pte. underscores Tata Steel's commitment to strengthening its international operations and enhancing its global footprint in the steel industry.
