Tata Steel Long Products Limited has further acquired 4,68,75,000 equity shares of Rs 10/- each at a premium of Rs 54 per share, of Neelachal Ispat Nigam Limited (NINL), a subsidiary of the Company, for an amount aggregating to Rs 300 crore, being Tranche 2 of the investment in the equity shares of NINL.
The proposed funding will be utilized towards the initial working capital and capex requirement of the NINL including the start-up of an iron and steel plant at Kalinganagar, repayment/prepayment of liabilities, and other general corporate purposes.
NINL initially set up a 1.1 MTPA blast furnace in 2002 to produce pig iron. Subsequently, other supporting facilities like a sinter plant, coke oven plant, power plant, etc. were commissioned.