Tata Steel infuses ₹10,727 crore into T Steel Holdings for debt repayment, UK restructuring

Steel major Tata Steel Ltd on Tuesday (February 25) said it has acquired 78.85 million ordinary equity shares for $1.24 billion (around ₹10,727 crore) from its wholly owned subsidiary, T Steel Holdings Pte Ltd. (TSHP).

The investment, made on February 25, 2025, will be used to repay external debt in Tata Steel’s offshore subsidiaries and support the restructuring of Tata Steel UK Ltd. TSHP, incorporated in Singapore in 2006, serves as Tata Steel’s holding entity for its overseas businesses.

While TSHP was already a wholly owned subsidiary, Tata Steel obtained RBI approval for the investment as it exceeded the $1 billion annual limit under the automatic route for overseas investments.

Last week, Tata Steel said it had acquired over 191 core equity shares of T Steel Holdings Pte Ltd for $ 300 million (₹2,603.16 crore).

Also Read: Tata Sons Chairman N Chandrasekaran: 2024 was a defining year for Assam, more investments will follow

"Tata Steel has today i.e., on February 20, 2025, acquired 191,08,28,025 ordinary equity shares of face value USD 0.157 each aggregating to USD 300 million (₹2,603.16 crore) in T Steel Holdings Pte. Ltd (TSHP)," Tata Steel said in an exchange filing.

Tata Steel reported a net profit of ₹295.5 crore, a notable surprise compared to CNBC-TV18's poll estimate of a ₹550 crore loss. However, the net profit declined 43.4% from ₹522 crore in the corresponding quarter of the previous year.

The company reported an exceptional loss of ₹126.2 crore against a loss of ₹334.13 crore in the year-ago period. Revenue from operations stood at ₹53,648.3 crore, exceeding the poll estimate of ₹52,550 crore but marking a 3% decline year-on-year (YoY) from ₹55,312 crore.

Also Read: Tata Steel CEO flags risks from US trade policies on steel sector

Shares of Tata Steel Ltd ended at ₹137.05, down by ₹0.60, or 0.44% on the BSE.