Tata Steel Ltd, a leading steel manufacturer, announced on Tuesday, 25 February, that it had acquired 78.85 million ordinary equity shares from its wholly owned subsidiary, T Steel Holdings Pte Ltd (TSHP), for $1.24 billion (approximately Rs 10,727 crore).
The investment, completed on 25 February 2025, will be utilized to repay external debt in Tata Steel’s offshore subsidiaries and aid the restructuring of Tata Steel UK Ltd. TSHP, established in Singapore in 2006, functions as Tata Steel’s holding entity for its international businesses.
Although TSHP was already a wholly owned subsidiary, Tata Steel secured approval from the Reserve Bank of India (RBI) for the investment, as it exceeded the $1 billion annual limit under the automatic route for overseas investments.
Last week, Tata Steel announced the acquisition of over 191 crore equity shares of TSHP for $300 million (Rs 2,603.16 crore).
The company reported a net profit of Rs 295.5 crore, outperforming CNBC-TV18’s estimated loss of Rs 550 crore. However, net profit declined 43.4% from Rs 522 crore in the same quarter last year.
Tata Steel recorded an exceptional loss of Rs 126.2 crore, significantly lower than the Rs 334.13 crore loss reported in the previous year. Meanwhile, revenue from operations stood at Rs 53,648.3 crore, surpassing the expected Rs 52,550 crore but reflecting a 3% year-on-year (YoY) decline from Rs 55,312 crore.
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