Tata Steel currently holds stake in a number of companies could sell stake to its parent, Tata Sons
Tata Steel is mulling stake sale in some of its group companies, including Tata Motors in a bid to raise Rs. 72 bn, said reports. Reeling under debt load and lowering steel prices, Tata Steel could sell stake to parent company, Tata Sons, to ease pressure on its balance sheets. Money raised by way of stake sale could be used for company's expansion plans in Odisha.
The company plans to invest a massive Rs. 420bn in Odisha plant in two phases. The company's European operation are under pressure owing to low demand. Recent currency slide and cost overruns has raised the company's projected expenditure in the first from 190bn to Rs. 240bn.
India's steel production grew at a mere 1.5% in May this year compared to the global growth rate of 2.6% according to a latest report by a global industry body.
Tata Steel currently holds 5.6% stake in Tata Motors, 51% stake in Tata Sponge, 73.4% on Tinplate India. Tata Steel could offload this stake, said reports.
Tata Steel is mulling stake sale in some of its group companies, including Tata Motors in a bid to raise Rs. 72 bn, said reports. Reeling under debt load and lowering steel prices, Tata Steel could sell stake to parent company, Tata Sons, to ease pressure on its balance sheets. Money raised by way of stake sale could be used for company's expansion plans in Odisha.
The company plans to invest a massive Rs. 420bn in Odisha plant in two phases. The company's European operation are under pressure owing to low demand. Recent currency slide and cost overruns has raised the company's projected expenditure in the first from 190bn to Rs. 240bn.India's steel production grew at a mere 1.5% in May this year compared to the global growth rate of 2.6% according to a latest report by a global industry body.
Tata Steel currently holds 5.6% stake in Tata Motors, 51% stake in Tata Sponge, 73.4% on Tinplate India. Tata Steel could offload this stake, said reports.
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