Tata Steel Acquires Shares Worth Rs 10,727 Crore In T Steel Holdings

Tata Steel Ltd. said on Tuesday that the company has acquired a stake in its Singapore-based unit, T Steel Holdings Pte. Ltd., in a transaction valued at Rs 10,727 crore.

The Tata Group's steelmaker acquired 788.5 crore shares, with a face value of $0.157 each, aggregating to $1,238 million or Rs 10,726.85 crore, according to an exchange filing. Post this acquisition, T Steel Holdings will continue to be a wholly owned subsidiary of the Indian steel manufacturer.

The latest stake acquisition comes after Tata Steel had acquired a stake worth Rs 2,603.2 crore in T Steel Holdings last week. Earlier in August 2024, the steelmaker had acquired a stake worth Rs 2,348 crore in its Singapore unit.

The present fund infusion will be used by TSHP to repay external debt at offshore entities and to support the restructuring at Tata Steel UK Ltd., wholly owned subsidiary of Tata Steel, as per filing. "The transaction was carried out in compliance with all applicable laws."

T Steel Holdings Pte. is a wholly owned subsidiary of Tata Steel Ltd., incorporated in Singapore on July 5, 2006. The primary business of TSHP includes holding of equity shares of indirect overseas subsidiaries of Tata Steel, and other entities, excluding banks. Tata Steel routes its investment into overseas businesses through TSHP, as per filing.

Shares of Tata Steel closed 0.42% lower at Rs 137.07 apiece on the NSE, compared to a 0.03% decline in the benchmark Nifty. The share price has fallen 5.76% in the last 12 months.

Out of the 35 analysts tracking the company, 21 have a 'buy' rating on the stock, eight recommend a 'hold,' and six suggest a 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 8.4%.