MUMBAI: Tata Steel will inject $2.5 billion (Rs 21,411 crore) into its Singapore unit , T Steel Holdings , to bolster its European business operations and repay debt. Tata Steel owns the UK and Netherlands businesses through T Steel Holdings.
Any overseas investment exceeding $1 billion in a financial year requires prior approval from the RBI. The board approved the investment proposal on Monday. Since T Steel Holdings is 100% owned by Tata Steel, there will be no change in the Singapore company's shareholding after the capital infusion. This move comes after Tata Steel converted $565 million (Rs 4,822 crore) loans given to T Steel into equity in FY25.
The Indian company's UK and Netherlands units are undergoing a transformation triggered by regulatory changes that are driving decarbonisation in Europe. This involves closing legacy assets and replacing them with new production routes centred around electric arc furnaces .
Future cash flows will depend on the impact of evolving regulations on carbon border adjustment (CBA is Europe and UK's way to set a fair price on carbon emissions while producing carbon-intensive goods. It charges this price when goods are imported into its territory, providing a level playing field to local producers who face similar carbon costs), availability/pricing of clean raw materials, and assumptions around costs of and market premium for green steel, the Indian company said.
Any overseas investment exceeding $1 billion in a financial year requires prior approval from the RBI. The board approved the investment proposal on Monday. Since T Steel Holdings is 100% owned by Tata Steel, there will be no change in the Singapore company's shareholding after the capital infusion. This move comes after Tata Steel converted $565 million (Rs 4,822 crore) loans given to T Steel into equity in FY25.
The Indian company's UK and Netherlands units are undergoing a transformation triggered by regulatory changes that are driving decarbonisation in Europe. This involves closing legacy assets and replacing them with new production routes centred around electric arc furnaces .
Future cash flows will depend on the impact of evolving regulations on carbon border adjustment (CBA is Europe and UK's way to set a fair price on carbon emissions while producing carbon-intensive goods. It charges this price when goods are imported into its territory, providing a level playing field to local producers who face similar carbon costs), availability/pricing of clean raw materials, and assumptions around costs of and market premium for green steel, the Indian company said.
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