Tata Sons increases stake in Tata Steel to 33%

Our Bureau Updated - March 27, 2021 at 07:37 PM.

Tata Sons converts partly-paid shares to fully paid and buys from open market

Kolkata: May 01, 2007: The employees are busy with the steel roll at Tata Steel plant at Jamshedpur in Jharkhand. Established in 1907, Tata Steel, Asia's first and India's largest private sector steel company will be celebrating its centenary year from August 26, 2007. The week-long celebrations will comprise various activities with the main focus on expansion plans of the company. The plant was founded by the visionary entrepreneur Jamsetji Nusserwanji Tata. Photo: Arunangsu Roy Chowdhury, Kolkata, May 01, 2007.

Tata Sons, the part-owner of Tata Steel, has increased its stake in the company to 33 per cent from 30 per cent with conversion of partly paid equity shares into fully-paid and acquisition of shares from the open market.

The partly-paid shares were allotted to Tata Sons as part of a rights issue in 2018. It also acquired about 1.55 crore equity shares from the open market on March 12 and 13, the company said in an announcement on Monday.

Along with Tata Sons, other promoters group companies such as Ewart Investments, Tata Capital, Tata Investment Corporation, Tata Industries, Tata Chemicals, Tata Motors, Tata Motor Finance and Titan Company have also converted their partly-paid equity shares into fully-paid increasing their stake marginally.

Last month, the company made the final call of ₹461 to convert 7.76 crore outstanding partly paid-up equity shares into fully-paid.

Merger of Bhushan Steel

Investors have also approved the company’s plan to merge Bamnipal Steel and Tata Steel BSL (formerly Bhushan Steel) into Tata Steel through e-voting on Friday.

Of the 120 crore equity shares outstanding, voting was done on 82 crore shares. Of this, only 45,407 shares held by public non-institutional investors saw voting against the proposal. The merger plan has thus received a thumping approval from 99.99 per cent shareholders who participated in the e-polling.

In 2019, Tata Steel board had approved the merger of Bamnipal Steel and Tata Steel BSL into the company.

The board has recommended a merger ratio of one equity share of ₹10 each of Tata Steel for every 15 shares of ₹ 2 each of Tata Steel BSL. As part of the scheme, the equity shares held by Bamnipal Steel and preference shares held by Tata Steel in Tata Steel BSL shall stand cancelled.

Tata Steel completed the acquisition of Tata Steel BSL on May 18, 2018, through the corporate insolvency resolution process under the IBC.

Published on March 27, 2021 14:00