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Tata Steel has announced that its step-down subsidiary Tata Steel Long Products Ltd (TSPL), has completed the acquisition of 93.71% in Neelachal Ispat Nigam Limited (NINL). TSLP paid out INR 121bn ($1.5bn) for the transaction. The acquisition details were as follows:
NINL is a strategic acquisition for Tata Steel to help restart the steel plant which has a capacity of 1mn tons per year. It plans to further expand capacity by building a 4.5mn tons per annum long steel set-up in the next few years, and gradually expand it to 10mn tons per year by 2030. Due to continued losses, the NINL Kalinganagar plant was shut since 2020. In January 2022 as a part of a divestment program, the government declared TSPL as the winning bidder.
Tata Steel’s dollar bonds were trading lower with its 5.95% 2024 down over 0.46 points to 100.29 yielding 5.80%.