Tata Steel invests Rs 10 cr in subsidiary

Tata Steel (TSL) announced on Friday that it acquired 4,65,116 equity shares of its wholly owned subsidiary, Tata Steel Utilities and Infrastructure Services (TSUISL), on rights basis amounting to Rs 10 crore.

TSUISL allotted the shares to TSL at Rs 215 each. TSUISL is engaged in the town management, power distribution, and real estate businesses. Its turnover for financial year 2021-2022 was Rs 1,193 crore.

These funds shall be utilized by TSUISL to invest in its step-down subsidiary, Tata Steel Special Economic Zone (TSSEZ), and to assist TSSEZ in partial repayment of its existing loans and to do other capital expenditures.

TSUISL continues to be TSL's wholly owned subsidiary. Post acquisition, Tata Steel's shareholding in TSUIS increased to 6,32,16,337 from 6,27,51,221 earlier.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tons per annum.

The company reported a consolidated net loss of Rs 2,502 crore in Q3 FY23 as against a net profit of Rs 9,598 crore in Q3 FY22. Total revenue from operations during the quarter amounted to Rs 57,084 crore, down 6% YoY.

The scrip declined 2.58% to Rs 102.15 on Friday, 24 March 2023.

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