Tata Steel Long Products Limited has, on November 24, 2022, further acquired 4,68,75,000 equity shares of ₹10/- each at a premium of ₹54 per share, of NINL(Neelachal Ispat Nigam Limited), a subsidiary of the Company, for an amount aggregating to ₹300 crore, being Tranche 2 of the investment in the equity shares of NINL.
Neelachal Ispat Nigam Limited has a 1.1 mtpa integrated iron and steel plant at Kalinganagar Odisha, along with iron ore mines with a reserve of ~90 MT.
NINL was incorporated on March 27, 1982, to set- up an integrated steel plant to undertake manufacturing and sale of steel products. NINL initially set up a 1.1 MTPA blast furnace in 2002 to produce pig iron. Subsequently, other supporting facilities like sinter plant, coke oven plant, power plant, etc. were commissioned.
The turnover/revenue of NINL for the previous three financial years are as below: FY2021-22: Rs.257.58 crore
FY2020-21: Rs.28.25 crore
FY2019-20: Rs.941.07 crore
The proposed funding will be utilized towards the initial working capital and capex requirement of the NINL including start-up of iron and steel plant at Kalinganagar, repayment/prepayment of liabilities and for other general corporate purposes.