Tata Steel Acquires 16.66% Stake in Indian Foundation for Quality Management

Tata Steel Limited has reinforced its commitment to quality management by increasing its stake in the Indian Foundation for Quality Management (IFQM). This move aligns with the company’s broader vision of supporting industry-wide quality enhancement initiatives. The acquisition reflects Tata Steel’s strategic approach to fostering management excellence in Indian organisations.

Strengthening Investment in IFQM

On April 1, 2025, Tata Steel Limited increased its equity stake in IFQM by acquiring 1,24,90,000 equity shares valued at ₹12.49 crore. This acquisition raised Tata Steel’s shareholding in IFQM from 9.09% to 16.66%. The investment aligns with Tata Steel’s commitment to enhancing quality management initiatives across industries.

The acquisition follows Tata Steel’s earlier disclosure on June 25, 2024, regarding its interest in IFQM. The transaction was executed as a cash purchase, ensuring a seamless investment process. IFQM, incorporated as a Section 8 company under the Companies Act, 2013, focuses on promoting quality principles and management practices across Indian industries.

Strategic Importance and Regulatory Compliance

IFQM was established to encourage Indian organisations to adopt superior quality management frameworks. Despite not generating revenue in its initial year, IFQM maintains a strong net worth of ₹59.67 crore as of March 31, 2024. Tata Steel’s decision to increase its stake demonstrates its strategic interest in supporting the foundation’s objectives.

The transaction qualifies as a related-party transaction since Tata Steel’s Chairman, Natarajan Chandrasekaran, is a board member of IFQM. However, it was executed at arm’s length and adheres to the Securities and Exchange Board of India’s (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The regulatory transparency ensures Tata Steel’s compliance with corporate governance norms while reinforcing its investment in industry-wide quality enhancement.

Tata Steel Share Performance 

As of April 02 2025, at 10:00 AM, the Tata Steel share price was trading at ₹152.79 per share, reflecting a decline of 0.22% from its previous closing price. Over the past month, it has surged by 10.26%.

Conclusion

Tata Steel’s increased stake in IFQM underscores its commitment to promoting quality management in India. The investment enhances the company’s influence in the foundation while supporting its long-term vision for industry-wide quality improvements. With a growing shareholding in IFQM, Tata Steel continues to strengthen its role in fostering high standards of management practices.

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