Tata Steel Acquired Additional Stake in TP Parivart Ltd

Tata Steel Limited has completed the acquisition of a 26% equity stake in TP Parivart Ltd (TPPL), a wholly-owned subsidiary of Tata Power Renewable Energy Ltd. (TPREL). TPPL is a leading player in the renewable energy sector, and Tata Steel’s investment in TPPL is part of its strategy to expand its presence in this growing market.

The Company has acquired 13,000 equity shares of TPPL for an aggregate consideration of ₹1,30,000. In addition, Tata Steel has committed to investing ₹100 crore in TPPL over the next three years.

The acquisition of TPPL will provide Tata Steel with access to TPPL’s renewable energy projects and expertise. This will help Tata Steel to achieve its goal of becoming a net-zero steelmaker by 2045.

This is a significant milestone for Tata Steel and TPPL. The partnership between the two companies will help to accelerate the development of renewable energy in India.

Prior Acquisition

Earlier this month, Tata Steel Limited acquired 1,78,34,39,490 ordinary equity shares of face value USD 0.157 each, aggregating to USD 280 million (₹2,347.81 crore) in T Steel Holdings Pte. Ltd (TSHP). Post this acquisition, TSHP will continue to be a wholly owned subsidiary of the company.

Financial Performance

During Q1 FY25, the company recorded consolidated revenues of ₹54,771 crores and EBITDA of ₹6,822 crores with an EBITDA margin of around 12.5%. The company spent ₹3,777 crores on capital expenditure during the quarter. The phased commissioning of the 5 MTPA expansion at Kalinganagar is progressing well towards blast furnace start-up in September 2024. At the end of the quarter, the company’s net debt stood at ₹82,162 crores. In addition, the liquidity remains strong at ₹36,460 crores, which includes cash & cash equivalents of ₹10,799 crores. Tata Steel started closing heavy-end assets at Port Talbot with the shutdown of BF #5 in early July 2024.

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