Tata Steel has acquired 1,15,45,667 equity shares of its indirect subsidiary Tata Steel Advance Material at an issue price of ₹12.81 per share on a preferential basis.
The transaction will lead to investment of about ₹14.80 crore. On completion of the acquisition, Tata Steel will directly hold 66.75 per cent equity in Tata Steel Advance Material and remaining will be held by Tata Steel Downstream Projects, a direct wholly-owned subsidiary of Tata Steel.
Prior to the transaction, Tata Steel was holding 46.43 per cent in the advance material business. The fresh equity investment will help Tata Steel Advance Material to grow its business, said the company.
Tata Steel Advance Material was incorporated on June 2012, as a wholly-owned subsidiary of Tata Steel. In FY21, it was transferred to Tata Steel Downstream Products. Tata Steel has ventured into new material business of producing composites, graphene, medical materials amongst others but Tata Steel Advance Material is yet to commence operations.