Tata Steel New Acquisition – T Steel Holdings’ 1.79 Cr Shares for ₹1563 Cr

India’s steel giant, Tata Steel, yesterday announced its latest acquisition of T Steel Holdings. The latter is a wholly owned foreign subsidiary of Tata Steel, and via this equity purchase, capital has been infused into T Steel. Let’s try to understand why this acquisition was made and how it has affected the Tata Steel share price. 

Details of the Deal 

Before digging into the why, let’s see the details of the deal. Tata Steel has acquired 1.79 crore equity shares of T Steel Holdings Pte. Ltd. (TSHP) for ₹1563 Crore. This deal was finalized a year back; however, now it is being implemented. The face value of each share stands at ₹8.63 (approx.). 

It is a part of the broader plan by the steel giant, which is to infuse $2.5 billion in TSHP during FY26 via one or multiple tranches. After all these transactions, T Steel will remain a wholly owned subsidiary of Tata Steel. In February 2025, the steel giant acquired 78.85 million equity shares for ₹10727 crore from TSHP. 

Since the total investment surpassed the annual limit under the automatic route for overseas transfers of $1 billion, Tata Steel needed approval from the RBI, which it obtained duly. 

Objectives Behind the Deals 

Now, coming to the ‘why’ of this deal, the investment made during February has been proposed to be used for repaying external debt. There are Tata Steel’s offshore subsidiaries for which these loans can be repaid. Then the proceeds are said to be used for restructuring Tata Steel UK Ltd., TSHP, which was incorporated in 2006 in Singapore. It is the steel giant’s holding entity that looks after overseas businesses. 

Share Price Movement

Today, Tata Steel Shares are trading in the green, with around a 0.71% rise compared to the previous close as of 1:20 pm. However, in the past year, it has delivered a negative 8.5% return. 

Source: CNBC TV18

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