Tata Steel Long Products acquires equity stake in Neelachal Ispat Nigam Limited for an amount aggregating to Rs 300 cr.
Tata Steel Long Products acquires equity stake in Neelachal Ispat Nigam Limited for an amount aggregating to Rs 300 cr.

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.

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