Tata Steel subsidiary, Tata Steel Long Products, today said that its board has approved raising up to Rs 13,000 crore via issuance of non-convertible redeemable preference shares on a private placement basis to its parent firm, Tata Steel.
The funds raised to meet the financial requirements will be used to implement Tata Steel's acquisition of Neelachal Ispat Nigam Ltd (NINL).
“…the Board at its meeting held today, Thursday, February 10, 2022, considered and approved, inter alia, the proposal of fund-raising, among others, through the issuance of non-transferable and non-transferable preferred shares (“NCRPS”) for the good of the Listed company An amount not exceeding â‚¹13,300 crore on the private placement basis, to Tata Steel Limited," the company said in a stock exchange filing.
Further, the Company's Board of Directors also approved consequential changes to the Memorandum and Articles of Association of the Company and approved the convening of the Extraordinary General Meeting on March 7, 2022 by videoconference or other audiovisual means for seeking shareholders’ approval.
Notably, on January 31, 2022, Tata Steel won the bid to acquire 93.71% equity stake in Neelachal Ispat Nigam Limited ("NINL") for Rs 12,100 crore, in accordance with the process being run by the Ministry of Investments and Public Assets Management (DIPAM).
Tata Steel said on Wednesday its arm has accepted a letter of award (LoA) for the acquisition of a 93.71 percent stake in NINL, adding that the acquisition is likely to be completed within the next two months.
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