Tata Steel acquires 12 million shares in TRF Limited
Tata Steel said that it has acquired 12 million shares in TRF Limited, a manufacturer of material handling equipment, for a price of INR 12 crores in cash.
The acquisition represents 11.25% optionally convertible redeemable preference shares (OCRPS) bought at a face value of INR 10 each.
TRF Limited is a listed associate company of Tata Steel Limited and is part of the Tata Steel Group. It is involved in designing and manufacturing of bulk material handling systems and equipment.
The company caters to power, steel, ports, mining and cement for projects carried out on turnkey basis. It mainly operates in the areas of electromechanical jobs, industrial structure and fabrication, and life cycle services and allied services.
TRF Limited’s manufacturing facility is located at Jamshedpur in a 21-acre area.
Tata Steel stated: “The OCRPS are being acquired to assist TRF in repayment/prepayment of the whole or a part of the existing indebtedness of TRF, payment against long outstanding vendor dues, to seek their support towards material supplies for completing legacy projects and delivering other committed orders and/or for other general corporate purposes.”
Tata Steel, being the promoter company, has a 34.11% stake in TRF Limited so far and 250 million non-convertible redeemable preference shares (NCRPS) of face value INR 10 each aggregating to 100% of the preference share capital.