Tata Steel Board Approves NINL Merger and $2 Billion Investment
The Tata Steel Board approved several key decisions on Tuesday. These include the merger of Neelachal Ispat Nigam Limited (NINL) into Tata Steel. Additionally, the Board gave the green light to an investment of $2 billion in its wholly-owned subsidiary, T Steel Holdings Pte.
The company disclosed this information in an exchange filing. The Board also approved the acquisition of a stake in Medica TS Hospital Private Limited. This stake will be purchased from Manipal Hospitals Eastern India Private Limited. A payment of ₹1.49 crore will be made for this acquisition. The Board approved the Scheme of Amalgamation between Neelachal Ispat Nigam Limited, Tata Steel, and their respective shareholders.
This scheme remains subject to necessary approvals. Tata Steel had acquired the Odisha-based NINL on July 4, 2022. This acquisition was executed through its then-subsidiary, Tata Steel Long Products, for a sum of ₹12,100 crore. The Board approved an investment of approximately $2 billion (₹18,488.10 crore) in T Steel Holdings Pte. Ltd., to be made through the subscription of equity shares starting from the financial year 2027. This investment will be carried out in one or more tranches.
Acquisition in Medica TS Hospital
The company approved the acquisition of securities in Medica TS Hospital Private Limited. This acquisition will be made from Manipal Hospitals Eastern India for a total consideration of ₹1.49 crore. This transaction is also subject to necessary approvals. Upon the completion of this transaction, Medica TS Hospital will become a wholly-owned subsidiary of Tata Steel Limited.
NINL Merger and Future Investment
The merger of NINL into Tata Steel is an integral part of the company’s strategic expansion plan. This merger will further strengthen the company’s steel business operations. The $2 billion investment in T Steel Holdings Pte. will be executed in multiple tranches, commencing from the financial year 2027. This investment is expected to help boost Tata Steel’s global operations.
