Tata Steel on Monday said it has completed the acquisition
of 93.71% stake in Neelachal Ispat Nigam Limited (NINL) through its listed step-down
subsidiary, Tata Steel Long Products (TSLP).

On January 31, TSLP was declared the winning bidder for the
one million tonnes (mt) NINL, an asset owned by central and state public sector
undertakings, in a process run by the Department of Disinvestment & Public
Asset Management (DIPAM), for a consideration of Rs 12,100 crore. The
transaction was completed via the purchase of equity shares and non-convertible
redeemable preference shares.

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The transaction included subscription of over 484 million
equity shares aggregating to Rs 3,100 crore by TSLP, subscription of 0.01% or
456 million non-convertible redeemable preference shares aggregating to around
Rs 4,560.54 crore, and purchase of 694 million equity shares by TSLP from MMTC,
MECON, NMDC, Bharat Heavy Electricals, Industrial Promotion and Investment
Corporation of Odisha Ltd, and Odisha Mining Corporation Ltd, for the balance
consideration.

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Accordingly, NINL has become a subsidiary of TSLP and an
indirect subsidiary of Tata Steel, the company said.

Tata Steel said it would restart the one million tonnes per
annum steel plant expeditiously as well as work simultaneously to expand the
capacity by building a 4.5 mt state-on-the-art products complex in the next few
works, and further expand it to 10 mt per annum by 2030.

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Besides a 1.1 mt plant, NINL has iron ore mines with
reserves of 90 mt and around 2,500 acres of land providing scope for future
expansion.

Tata Steel already plans to increase the capacity to 40 mt
by 2030 in India. The NINL acquisition strengthens its growth plan over the
next decade while providing the enablers to surpass the 40 mt targets.

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“Acquisition of NINL is a historic achievement and a
significant milestone towards building a dedicated long products facility for
the Tata Steel Group,” said TV Narendran, CEO & managing director, Tata
Steel, and chairman of TSLP.

“The completion of the transaction is a testimony to the
Government of India’s focus on its disinvestment program. The acquisition also
reflects Tata Steel’s commitment to the state of Odisha and the communities
around its operations,” he added.

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He further stated that Tata Steel would endeavor to enable
a swift transformation of NINL into a state-of-the-art, sustainable and
competitive enterprise.

The acquisition is a part of Tata Steel’s plan to grow its
long product capacity as India focuses on infrastructure spending which is
expected to boost steel consumption.

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Tata Steel will strengthen its capability in the long
products business using its strong brand equity, particularly in the retail
construction segment, and its extensive, pan-India retail and distribution
network to drive scale in long products, the company said.