Tata Steel Ltd acquires shares of TRF Limited

1.

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

TRF Limited ('TRF')

TRF is a listed entity engaged in the production of material handling equipment. It has manufacturing facility at Jamshedpur.

The turnover for FY 2018 is Rs.359.31 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"

TRF Limited, a Group Company of Tata Steel, has allotted NCRPS to Tata Steel. The allotment is in compliance with applicable laws.

3.

Industry to which the entity being acquired belongs

Manufacturing of material handling equipment

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)

To stabilize the capital structure of TRF Limited and the consequent efficiency, in managing business

5.

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

NA

6.

Indicative time period for completion of the acquisition

25,00,00,000 NCRPS of face value ₹10 each aggregating to ₹250 crore were allotted to Tata Steel Limited today i.e. on March 22, 2019

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

25,00,00,000 NCRPS have been allotted at face value of ₹10 each. Tata Steel Limited holds 100% of the NCRPS of TRF Limited.

9.

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

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);

TRF Limited ("TRF" or the "Company") has been engaged in the business of designing & manufacturing of bulk material handling systems and equipments for core sector industries such as power, ports, steel, mining and cement for projects undertaken on Turnkey basis. The equipments include Crushers, Screens, Feeders, Conveying equipment, Mining equipment, Wagon tippler systems and Stacker re-claimers.

The company primarily operates in the following areas:

· Electromechanical jobs

· Industrial structure and fabrication

· Life Cycle Services and allied services

Electro-mechanical jobs and Industrial fabrication specialize in design, manufacture, erection and commissioning of units or equipment, Life cycle services helps meet the post commissioning requirement of customers.

The manufacturing facility of the Company is located at Jamshedpur works on a 21 acre area (covered area: 26,050 sq. mts.) at Burmamines locality.

Being a Tata Group Company, having manufacturing facility and a receptive industrial workforce are some factors that offer competitive advantage to the Company.

TRF Limited's revenues of last three consecutive year are as below:

· FY 2018 Revenues: Rs. 359.31 crore

· FY 2017 Revenues: Rs. 529.75 crore

· FY 2016 Revenues: Rs. 580.04 crore