Tata Steel’s arm acquires 90% stake in Rohit Ferro-Tech
13th Apr 2022

Tata Steel’s unlisted wholly-owned subsidiary -- Tata Steel Mining (TSML) has successfully completed the acquisition of controlling stake of 90% in Rohit Ferro-Tech (RFT) in accordance with the approved Resolution Plan under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC).

As per the terms of the Resolution Plan, TSML has funded Rs 617.12 crore for paying the admitted CIRP cost, employee dues, operational creditors and financial creditors as per the provisions of the approved resolution plan. Additionally, 10% of the equity shares of RFT has been issued to the financial creditors of RFT towards part conversion of their loan.

The investment from TSML to RFT has been made through a combination of equity of Rs 10 crore and inter-corporate loan of Rs 607.12 crore. The Company has made equity investment in TSML for financing the acquisition.

Pursuant to the acquisition and in accordance with the approved plan, the nominees of TSML have been appointed on the board of RFT effective April 11, 2022 and the existing directors of RFT ceased to be directors effective April 7, 2022.

Tata Steel, the flagship company of the Tata group, is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 company.