Acquisition of 10,00,00,000 – 0.01% NCRPS of TSLP

1.

Name of the target entity, details in brief such as size, turnover etc.

Tata Steel Long Products Limited ('TSLP')

TSLP is a listed subsidiary of Tata Steel Limited ('Company') and forms part of the Tata Steel Group. TSLP is one of the largest specialty steel plants in India with an annual capacity of 1 million tonne per annum. From being a Direct Reduced Iron manufacturer, the Company has become one of the leading players in the field of Long Products with commercial presence across

India. The Company, being the Promoter Company, holds 74.91% shareholding in TSLP as on date.

The turnover/revenue of TSLP for previous 3 financial years is as follows:

FY2020-21: ₹4,749.87 crore

FY2019-20: ₹3,489.99 crore

FY2018-19: ₹992.05 crore

2.

Whether the acquisition would fall within related party transaction(s) and whether the promoter/promoter group/ group companies have any interest in the entity being acquired?

If yes, nature of interest and details thereof and whether the same is done at "arm's length"

TSLP is a listed subsidiary of Tata Steel Limited.

Tata Steel Limited, being the Promoter Company, holds 74.91% shareholding in TSLP as on date.

The allotment is in compliance with applicable laws.

3.

Industry to which the entity being acquired belongs

Manufacturing of steel and Sponge Iron (DRI)

4.

Objects and effects of acquisition (including but not limited to, disclosure of reasons for acquisition of target entity, if its business is outside the main line of business of the listed entity)

The NCRPS are being acquired to assist TSLP in funding its growth plans including the acquisition of and/or subscription to shares of Neelachal Ispat Nigam Limited or any other company, repayment/prepayment of any indebtedness including financial or operational creditors of TSLP and/or its subsidiary, lending to any subsidiary of TSLP and/or for general corporate purposes.

5.

Brief details of any governmental or regulatory approvals required for the acquisition

NA

6.

Indicative time period for completion of the acquisition

Tata Steel Limited has today, i.e., March 17, 2022, acquired 10,00,00,000 - 0.01% NCRPS of face value of ₹100/- each for an aggregate value of ₹1,000 crore (Tranche 1).

7.

Nature of consideration - whether cash consideration or share swap and details of the same

Cash

8.

Cost of acquisition or the price at which the shares are acquired

10,00,00,000 - 0.01% NCRPS of face value of ₹100 each aggregating to ₹1,000 crore has been allotted to Tata Steel Limited on private placement basis.

9.

Percentage of shareholding / control acquired and / or number of shares acquired

At present, Tata Steel Limited holds 3,37,86,521 equity shares of face value of ₹10 each aggregating to 74.91% of the equity capital of TSLP.

With the above-mentioned acquisition, Tata Steel Limited will hold 10,00,00,000 - 0.01% NCRPS representing 100% of the preference share capital of TSLP. The voting rights of Tata Steel Limited as a preference shareholder of TSLP will be as per the provisions of the Companies Act, 2013 read with the Articles of Association of TSLP.

10.

Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information(in brief);

TSLP, was incorporated on July 31, 1982 and is one of the leading manufacturers of specialty steel in the Country. TSLP has its manufacturing plants in Joda, Odisha, and Gamharia, Jharkhand located near India's richest iron ore reserves and is well connected with roadways and railways, enabling it to seamlessly cater to different stakeholders.

As of March 31, 2021, the production capacity of TSLP is as follows:

Sponge iron (DRI) - 1 MTPA

Crude Steel - 1 MTPA

The turnover/revenue of TSLP for the last three financial years are as below:

FY2020-21: ₹4,749.87 crore

FY2019-20: ₹3,489.99 crore

FY2018-19: ₹992.05 crore