| Amid the battle for Anglo-Dutch steelmaker Corus Group, Tata Steel has managed to snap up a smaller catch, the Kolkata-based Rawmet Ferrous Industries.
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| In an intimation to the stock exchanges, Tata Steel said it has entered into an agreement to acquire 100 per cent equity in Rawmet Ferrous Industries for an undisclosed sum.
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| Rawmet has its registered office in Kolkata and ferro alloy plant near Cuttack in Orissa, comprising two 16.5 MVA semi-closed electric arc furnace with a 50,000 tonne high carbon ferro chrome capacity.
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| The agreement was signed in Bhubaneshwar by Tata Steel and IMR Metallurgical Resources AG, which holds 66.46 per cent, Rawmet Commodities, with 12.48 per cent and other shareholders. Rawmet is an unlisted company.
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| On conclusion of the transaction, the board of Rawmet Ferrous Industries would be reconstituted to include representatives of Tata Steel.
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| The Tata Steel scrip surged by 3.92 per cent today on the Bombay Stock Exchange (BSE) to Rs 485.70 and 3.81 per cent on the National Stock Exchange (NSE).
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| Volumes on BSE and NSE were 840,389 shares and 2,403,823 shares, respectively.
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| Rawmet is in the process of setting up a ferro alloy plant along with a waste-based power plant and a coke oven battery at Anantapur village in Cuttack district. The cost of the entire project is around Rs 326.50 crore.
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| Tata Steel has a ferro alloys and minerals division (FAMD), with a turnover in excess of Rs 1,500 crore. FAMD’s own plant is of 50,000 tonne. Apart from the plant at Bamnipal, FAMD had a plant at Joda, as well.
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| Although chrome and manganese form the mainstay of FAMD’s business, it also deals with iron ore, dolomite, coal, coke, other ferro alloys and minerals through various national and international business partners in order to provide a comprehensive package to customers. |
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