Transfers Jamshedpur Continuous Annealing and Processing Company and Tata BlueScope Steel to Tata Steel Downstream Products
Tata Steel announced that as it is reorganizing its India footprint into 4 clusters to drive scale, synergies and simplification and to create value for all stakeholders.As part of the said initiative, the Company today transferred the 51% stake it holds in Jamshedpur Continuous Annealing and Processing Company (JCAPCPL) and 50% stake it holds in Tata BlueScope Steel (TBSPL) to Tata Steel Downstream Products (TSDPL), a wholly owned subsidiary of the Company.
TSDPL has been identified as the anchor entity for downstream business. Accordingly, the Company's investment(s) held in entities forming part of downstream business are being consolidated with TSDPL.
Tata Steel held 73,03,20,000 equity shares of Rs 10/- each in Jamshedpur Continuous Annealing and Processing Company (JCAPCPL). JCAPCPL is a joint venture company in which Tata Steel holds 51%. As on 31 March 2020, the net worth of the JCAPCPL as considered in Tata Steel's financial statements was Rs 428.60 crore.
The consideration is in the form of 6,46,53,134 (rounded off) equity shares of Tata Steel Downstream Products allotted to Tata Steel at Rs 129 per equity share (includes face value of Rs 10 each) being the fair value as determined by an Independent Registered Valuer.
Tata Steel held 43,30,00,000 equity shares of ₹10/- each in Tata BlueScope Steel (TBSPL). TBSPL is a joint venture company in which Tata Steel holds 50%. As on 31 March 2020, the net worth of the TBSPL as considered in Tata Steel's financial statements was Rs 469.97 crore.
The consideration is in the form of 10,94,24,806 equity shares of Tata Steel Downstream allotted to Tata Steel at Rs 129 per equity share (includes face value of Rs 10 each) being the fair value as determined by an Independent Registered Valuer.
Post the allotment of 17,40,77,940 equity shares, Tata Steel's shareholding in TSDPL stands increased to 24,23,27,940 equity shares. TSDPL continues to be a wholly owned subsidiary of Tata Steel.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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