Tata Steel on Tuesday said it has invested around Rs 54 crore in its wholly-owned arm TSML through acquisition of additional shares on preferential basis. The funds will be used by TSML to meet capital expenditure requirements, a regulatory filing said.
Tata Steel acquired on preferential basis 2,81,98,433 equity shares of Rs 10 each at a premium of Rs 9.15 per share of TSML.
Before acquisition, Tata Steel held 82,19,17,021 shares in Tata Steel Mining Ltd (TSML) which accounted for 100 per cent. While post acquisition, the steel giant holds 85,01,15,454 shares in its arm which is again 100 per cent.
TSML is in mining and ferro alloys business and operates three chromite mines, two ferro alloy plants. It has partnered with seven external ferro processing centres for the manufacture of ferro chrome. TSML provides raw materials to stainless steel, alloy steel and refractory manufacturers across the globe.
