Tata Steel to Invest $2.11 Billion Equity in Overseas Arm T Steel Holding

Tata Steel approved a plan to invest up to $2.11 billion equity in unit T Steel Holdings Pte on Wednesday, May 29. The steelmaker will infuse the funds in the wholly-owned foreign unit in one or more tranches during the Financial Year 2024-25. 

Key Takeaways from Tata Steel’s Acquisition:

• Tata Steel plans to invest up to $2.11 billion equity in unit T Steel Holdings Pte. 
• The funds will be infused in the unit in one or more tranches during the FY25.
• The infused fund will be used by T Steel to repay external debt at offshore entities and to support the restructuring costs at Tata Steel UK.

The fund infusion will be used by T Steel to repay external debt at offshore entities and to support the restructuring costs at Tata Steel UK.

Tata Steel will also convert debt instruments of $565 million held by the company in TSHP. The company will also continue to hold these converted equity shares.

T Steel Holdings Pte (‘TSHP’) is a wholly owned subsidiary of Tata Steel, incorporated in Singapore on July 5, 2006. 

The primary business of the arms includes holding equity shares of indirect overseas subsidiaries of Tata Steel and other entities, excluding banks.

About Tata Steel Limited:

Tata Steel was established in 1907, in India, as Asia’s first integrated private steel company. The company has developed India’s first industrial city Jamshedpur. Today, Tata Steel is among the leading global steel companies with an annual crude steel capacity of nearly 20 million tonnes per annum and a registered turnover of 1,37,030 crore rupees in FY23. The company’s second greenfield steel plant of 3 million tonnes per annum was set up in the eastern state of Odisha in 2016. Tata Steel’s product portfolio is divided into four segments namely automotive and special products, industrial products, projects and exports, branded products and retail among others. 

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