On February 25, 2025, Tata Steel Limited made a significant announcement regarding their acquisition of an equity stake in T Steel Holdings Pte. Ltd. (TSHP). This move aims to bolster Tata Steel’s global presence and strengthen its financial stability.
Key Details of the Acquisition:
Target Entity: T Steel Holdings Pte. Ltd. (TSHP), a wholly owned subsidiary of Tata Steel Limited, was incorporated in Singapore on July 5, 2006. TSHP’s primary business involves holding equity shares of indirect overseas subsidiaries of Tata Steel Limited and other entities, excluding banks. Tata Steel Limited channels its investments into overseas businesses through TSHP.
Objective: The funds from this acquisition will be utilized to repay external debt in Tata Steel’s offshore subsidiaries and support the restructuring of Tata Steel UK Limited, a wholly owned subsidiary of Tata Steel Limited. Tata Steel Limited will retain 100% equity shareholding in TSHP.
Consideration: The acquisition was financed through cash.
Cost: Tata Steel Limited acquired 788,53,50,318 ordinary equity shares of face value USD 0.157 each, amounting to a total of USD 1,238 million (₹10,726.85 crore) in TSHP.
Shareholding: Tata Steel Limited holds 100% equity shareholding in TSHP. Post-transaction, Tata Steel Limited will continue to maintain 100% equity shareholding in TSHP.
Completion Date: The transaction was completed on February 25, 2025.
Approvals: Tata Steel Limited obtained approval from the Reserve Bank of India (RBI) as the financial commitment exceeded the USD 1 billion limit for FY 2024-25 allowed under the automatic route.
Related Party Transaction: Yes. TSHP is a wholly owned subsidiary of Tata Steel Limited. The present fund infusion will be used by TSHP to repay external debt at offshore entities and support the restructuring of Tata Steel UK Limited. The transaction was carried out in compliance with all applicable laws.
Financial History:
FY 2024: Total Income ₹640.37 crore, PAT (₹10,289.09) crore, Net worth ₹44,006.70 crore
FY 2023: Total Income ₹1,089.60 crore, PAT (₹4,366.70) crore, Net worth ₹19,699.87 crore
FY 2022: Total Income ₹785.95 crore, PAT (₹0.20) crore, Net worth ₹22,162.53 crore
This acquisition underscores Tata Steel Limited’s commitment to strengthening its financial position and supporting its overseas subsidiaries. By securing this equity stake, Tata Steel Limited is poised to enhance its global operations and achieve greater financial stability. Stay tuned for more updates on this strategic development.
