Tata Steel Long Products on Thursday said its board had approved raising up to ₹13,000 crore through issuance of non-convertible redeemable preference shares on a private placement basis to parent firm Tata Steel.
The funds raised would be used to meet the financial requirements to give effect to Tata Steel’s acquisition of Neelachal Ispat Nigam Ltd. (NINL). Tata Steel Long Products is a subsidiary of Tata Steel.
Last month, Tata Steel had announced winning the bid for acquiring a 93.71% stake in the Odisha-based NINL for ₹12,100 crore.
Tata Steel had on Wednesday said that the process for the buyout was likely to be completed in the next couple of months.