Tata Steel shares soar nearly 6% on acquiring bio-ceramics firm Ceramat

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TSMAL executed a share purchase agreement for the acquisition of a 90% equity stake in Ceramat
Tata Steel intends to establish a world-class facility for the production of medicinal materials
The company's consolidated net profit increased by 139.3% to Rs 9,598.16 crore in Q3 December 2021

Written By:Yash

Updated: March 01 2022 08:16:30 PM ET

Tata Steel shares surged nearly 6% to Rs 1,293.00 on the BSE in Wednesday’s intra-day trade after its wholly-owned subsidiary, Tata Steel Advanced Materials (TSMAL) executed a share purchase cum shareholders’ agreement for the acquisition of a 90% equity stake in Ceramat (CPL). For Rs 90,000, the steelmaker would buy 90% of CPL’s stake.

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Ceramat was founded on November 2, 2021, with the goal of developing advanced ceramics with a health care focus. Sabyasachi Roy and Tushar Gothi are co-promoters of CPL. CPL has not begun operations as of yet.

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Sabyasachi Roy is a ceramic technologist and entrepreneur, while Tushar Gothi has worked in the ceramic industry for 16 years.

CPL promoters have a fundamental competency in creating diverse oxide ceramic compositions using process methods like slip casting, gel casting, powder compaction, spray drying, and Vibro-casting, which are critical in advanced ceramics manufacture.

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Advanced ceramics have been recognized as one of the new materials for strategic expansion by Tata Steel. Because of its great development potential and non-cyclical nature, medical materials are the first area of choice in advanced ceramics.

Tata Steel intends to establish a world-class facility for the production of medicinal materials, and CPL will be used as a special purpose vehicle for this purpose. The facility will be dedicated to the production of hydroxyapatite, a calcium phosphate-based ceramic used as a bone replacement. CPL’s promoter is one of the few with such shown capability.

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Tata Steel Group is one of the world’s largest steel companies, with an annual crude steel capacity of 34 million tonnes.

The company’s consolidated net profit increased by 139.3% to Rs 9,598.16 crore in Q3 December 2021 over Q3 December 2020, owing to a 45.9% increase in net sales to Rs 60,524.72 crore.