The company acquired 162.04 crore equity shares of TSHP on Thursday, August 27, Tata Steel said in an exchange filing. The shares have a face value of $0.0864 each.
The investment doesn’t change the ownership of TSHP, which will remain a wholly owned subsidiary of Tata Steel.
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Part of a much bigger funding plan
Tata Steel’s board had in March approved an infusion of up to $2 billion into T Steel Holdings through the subscription of equity shares in one or more tranches.
The approval raised Tata Steel’s overall investment limit in T Steel Holdings to $26.21 billion, making the latest $140-million infusion a relatively small part of the total capital that the parent has been authorised to deploy in the subsidiary.
Thursday’s $140-million investment is part of that previously approved $2-billion funding programme. Tata Steel didn’t disclose how TSHP intends to use the latest infusion.
The company had last provided an update on the investment programme on June 24.
For the regulatory disclosure, Tata Steel converted the investment into rupees using the Reserve Bank of India‘s August 24 exchange rate of ₹95.7258 to the dollar.
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What is T Steel Holdings?
T Steel Holdings is Tata Steel’s wholly owned overseas investment arm and sits within the corporate structure through which the steelmaker holds several of its international businesses.
The latest equity subscription doesn’t alter that relationship, with Tata Steel continuing to own 100% of TSHP after the transaction.
Tata Steel shares closed 0.64% lower at ₹186.80 on Thursday.
