Tata Steel Mining Limited ('TSML'), an unlisted wholly-owned subsidiary of Tata Steel Limited ('Company'), has successfully completed the acquisition of controlling stake of 90% in Rohit Ferro-Tech Limited ('RFT') in accordance with the approved Resolution Plan under the Corporate Insolvency Resolution Process ('CIRP') of the Insolvency and Bankruptcy Code 2016 ('IBC').
As per the terms of the Resolution Plan, TSML has funded ₹617.12 crore for paying the admitted CIRP cost, employee dues, operational creditors and financial creditors as per the provisions of the approved resolution plan. Additionally, 10% of the equity shares of RFT has been issued to the financial creditors of RFT towards part conversion of their loan.
The investment from TSML to RFT has been made through a combination of equity of ₹10 crore and inter-corporate loan of ₹607.12 crore. The Company has made equity investment in TSML for financing the acquisition.
Pursuant to the acquisition and in accordance with the approved plan, the nominees of TSML have been appointed on the board of RFT effective April 11, 2022 and the existing directors of RFT ceased to be directors effective April 7, 2022.
Shares of Tata Steel Limited was last trading in BSE at Rs. 1320.55 as compared to the previous close of Rs. 1358.00. The total number of shares traded during the day was 538554 in over 23273 trades.
The stock hit an intraday high of Rs. 1359.55 and intraday low of 1296.55. The net turnover during the day was Rs. 708178594.00.