Tata Steel Limited Regulatory News (TTST)

a.

Name of the target entity, details in brief such as size, turnover etc.;

Angul Sukinda Railway Limited ('ASRL'), is a public limited company incorporated on February 20, 2009 having its Registered Office at Plot No.: 25/381/902, Samantapuri, Press Chhak, Gajapatinagar, Bhubaneswar, Odisha.

ASRL was incorporated as a special purpose vehicle by the Ministry of Railways, for developing, financing, construction, operation and maintenance of a 104.24 km broad gauge single railway line between Angul and Sukinda in Odisha to establish direct link between (1) iron-ore rich areas of Odisha viz. Joda-Barbil to steel and sponge iron industries in Angul region and (2) between coal mining region in Talcher to industries in Jakhapura, Joda-Barbil and areas in Kendujhar district, Odisha.

Turnover of ASRL as on March 31, 2021 is ₹539.62 crore.

b.

Whether the acquisition would fall within related party transaction(s) and

whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and

whether the same is done at "arm's length"

No

c.

Industry to which the entity being acquired belongs;

Infrastructure (Railway)

d.

Objects and effects of acquisition (including but not limited to, disclosure of reasons for acquisition of target entity, if its business is outside the main line of business of the listed entity);

Construction of an Additional Railway Line for Tata Steel Limited to meet the logistic requirement of TSL's Kalinganagar Steel Plant.

e.

Brief details of any governmental or regulatory approvals required for the

acquisition;

Approval obtained vide Government of India / Ministry of Railways (Railway Board) Letter No. 2006/Infra/12/4 dated August 2, 2021.

f.

Indicative time period for completion of the acquisition;

December 31, 2024 (subject to terms and conditions of the Transaction).

g.

Nature of consideration - whether cash consideration or share swap and details of the same;

Cash

h.

Cost of acquisition or the price at which the shares are acquired;

₹400 Crore (Rupees Four Hundred Crore only)

i.

Percentage of shareholding / control acquired and / or number of shares

acquired;

TSL will acquire 40,00,00,000 (Forty crore) non-convertible, non-cumulative, redeemable preference shares of face value of ₹10/- (Rupees ten) each in a phased manner, redeemable at the end of twenty (20) years or earlier, as per the terms of issuance.

j.

Brief background about the entity acquired in terms of products/line of

business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information (in brief);

Angul Sukinda Railway Limited, a special purpose vehicle, was incorporated by the Ministry of Railways (MOR) for developing, financing, construction, operation and maintenance of a 104.24 km broad gauge single railway line between Angul and Sukinda in Odisha to establish direct link between iron-ore rich areas of Odisha viz. Joda-Barbil to steel and sponge iron industries in Angul region and between coal mining region in Talcher to industries in Jakhapura, Joda-Barbil and areas in Kendujhar district.

Date of Incorporation: February 20, 2009

Turnover of ASRL for last 3 years:

i. FY-2018-19 (as on March 31, 2019): ₹238.21 crore.

ii. FY-2019-20 (as on March 31, 2020): ₹303.08 crore.

iii. FY-2020-21 (as on March 31, 2021):₹539.62 crore.