New Delhi, Jan 31 (PTI) Tata Steel on Monday announced winning the bid for acquiring 93.71 per cent stake in Odisha-based Neelachal Ispat Nigam Ltd (NINL) for Rs 12,100 crore.

In an interview to PTI earlier, Tata Steel CEO and MD T. V Narendran had expressed his company's interest in acquiring the 1 million tonne steel asset located near its Kalinganagar steel facility in Odisha.

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In a statement, the company said its subsidiary Tata Steel Long Products Ltd has been announced as the winner of bidding process to acquire a 93.71 per cent stake in NINL in accordance with the process being run by Department of Disinvestment and Public Asset Management (DIPAM).

The acquisition of NINL, Tata Steel said, provides a significant opportunity to not only restart the plant shut since 2020, but also begin work immediately to build a 4.5 million tonne per annum state- of-the-art long products complex in the next few years, and further expand it to 10 million tonne per annum by around 2030.

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The acquisition of NINL is critical for Tata Steel to build a dedicated long products complex which will be positioned to leverage synergies with the shared infrastructure of Tata Steel in the area.

"Tata Steel will leverage its capability in the long products business using its strong brand equity, particularly in the retail construction segment, and its extensive, pan-India retail and distribution network to drive scale and profitability in Long Products. The total consideration of Rs 12,100 crore reflects the enterprise value (including all recorded liabilities) as part of the acquisition of 93.71 per cent equity stake in NINL," the company statement said.

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, it said.

The transaction is scheduled for closure within the next couple of months as per the process announced by DIPAM, it said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)