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MUMBAI - Tata Steel (NSE:TISC) Limited has infused $1.24 billion into its wholly owned subsidiary, T Steel Holdings Pte. Ltd. (TSHP), the company reported on February 25, 2025. This strategic move involves the acquisition of 788,53,50,318 ordinary equity shares, each valued at $0.157, culminating in a total investment of approximately ₹10,726.85 crore based on the current exchange rates.
The capital injection by the Indian multinational steel-making company is set to aid in the repayment of external debt across Tata Steel’s offshore entities and bolster the restructuring efforts of Tata Steel UK Limited, also a wholly owned subsidiary of Tata Steel Limited. Following this acquisition, Tata Steel Limited maintains its 100% equity shareholding in TSHP.
TSHP, incorporated in Singapore on July 5, 2006, functions primarily as an investment holding company, managing the equity shares of Tata Steel Limited’s indirect overseas subsidiaries, with the exception of banking entities. In the previous three fiscal years, TSHP has reported varying financial results, with a net worth of ₹44,006.70 crore in FY 2024, despite a negative profit after tax (PAT) in the same period.
The acquisition aligns with the compliance requirements of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the transaction adhered to the Foreign Exchange Management (Overseas Investment) Directions, 2022, with the Reserve Bank of India (NSE:BOI)’s approval secured due to the financial commitment exceeding the USD 1 billion threshold permitted under the automatic route for the fiscal year 2024-25.
This strategic financial maneuver is indicative of Tata Steel Limited’s continued investment in its global operations and the restructuring of its UK business. The company’s commitment to its subsidiary underscores its approach to managing its international investments and addressing its debt obligations.
The information reported is based on a press release statement issued by Tata Steel Limited and disseminated through the London Stock Exchange (LON:LSEG)’s news service, RNS.
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