Tata Steel Long Products Limited (BSE:513010) signed a letter of intent to acquire 93.71% stake in Neelachal Ispat Nigam Limited from group of shareholders for INR 121 billion on January 31, 2022. Tata Steel Long Products Limited executed a Share Sale and Purchase Agreement with MMTC Ltd, NMDC Ltd, MECON Ltd, Bharat Heavy Electricals Ltd, Industrial Promotion and Investment Corporation of Odisha Ltd, Odisha Mining Corporation Ltd., President of India, Government of Odisha for acquisition of 93.71% equity shares in NINL on March 10, 2022. The total consideration of INR 121 billion reflects the enterprise value as part of the acquisition of 93.71% equity stake in NINL.

Tata Steel Long Products Limited is the winner of the bidding process to acquire a 93.71% of Neelachal Ispat Nigam Limited. The acquisition is being financed through a combination of internal accruals and bridge loans which are expected to be paid down through internal generation of Tata Steel over the next few quarters. Transaction is subject to Consummation of Due Diligence Investigation.

As of September 1, 2021, The transaction is expected to close in December, 2021. Balance Sheet while it pursues its growth priorities. The transaction is scheduled for closure within the next couple of months as per the process timelines announced by DIPAM, Government of India.

DIPAM issued the Letter of Award to Tata Steel Long Products regarding the transaction. As of October 8, 2021, The Hon'ble High Court of Delhi directed the Judgment Debtor (MMTC Ltd) that an amount to the extent of INR 10 billion, from the surplus amount, once received from the disinvestment proceeds of NINL, be deposited before this Court, after adjustments of the dues of the banks under the Master Debt Resolution Agreement dated June 8, 2021. As on February 7, 2022, transaction is expected to close before the end of this financial year.

As of February 1, 2022, Government of India has approved the transaction. As on February 10, 2022, Board of Tata Steel approved this transaction. As on February 11, 2022 transaction is likely to be completed in next couple of months.

As of March 10, 2022, transaction is expected to complete within 45 days of share purchase agreement. Shameek Chaudhuri, Nilanjana Singh, Qais Jamal and Nikunj Maheshwari of AZB & Partners acted as legal advisor to Tata Steel Long Products Limited (BSE:513010). Ernst & Young acted as financial advisor to Tata Steel Ltd.