Tata Steel Limited received an order from the National Company Law Tribunal (NCLT), Mumbai Bench, on October 1, 2026, approving and sanctioning the scheme of amalgamation with its wholly owned subsidiary, Rujuvalika Investments Limited.

The tribunal sanctioned the scheme under Sections 230 to 232 of the Companies Act, 2013. The merger is effective from the appointed date of April 1, 2023. This consolidation aims to simplify the corporate structure of the Tata Steel group by reducing shareholding tiers and legal entities.

Scheme Details and Rationale

Rujuvalika Investments Limited is a non-banking financial company (NBFC) registered with the Reserve Bank of India. However, it does not have active operations as an NBFC. The amalgamation will result in the cancellation of all shares held by Tata Steel in Rujuvalika without any new share issuance or cash payment.

The primary benefits cited for the merger include:

• Simplification of the corporate structure and reduction in shareholding tiers.
• Decrease in multiplicity of legal and regulatory compliances.
• Reduction in the number of legal entities within the group.
• Savings in administration, operations, and compliance costs.

Regulatory Compliance and Timeline

The process involved several regulatory steps prior to the final NCLT approval. The boards of both companies approved the scheme in March 2024. The RBI granted a No-Objection Certificate (NOC) on June 18, 2024, requiring specific amendments to the scheme regarding the transfer of legal proceedings.

A significant procedural delay occurred due to the need to settle obligations with a secured creditor, the Joint Plant Committee (JPC). Tata Steel paid ₹2,824.15 crore to the JPC on April 25, 2025, to discharge loan-related obligations, which allowed the company to proceed with filing the scheme application in May 2025.

What the Numbers Show

The financial data disclosed in the NCLT order highlights the dormant nature of the transferor entity. Rujuvalika Investments Limited holds 11,68,393 equity shares of Tata Steel, acquired before it became a subsidiary in May 2015. These shares carry no voting rights and will be cancelled upon the scheme's effectiveness. The absence of active NBFC operations in Rujuvalika confirms that this merger is purely a structural cleanup rather than an operational integration, eliminating redundant compliance overheads associated with maintaining a separate NBFC license for an inactive entity.

Tata Steel Limited has acquired equity shares in its wholly owned foreign subsidiary, T Steel Holdings Pte. Ltd (TSHP), for $340 million (₹3,260.32 crore). The transaction, completed on September 29, 2026, strengthens the capital base of the Singapore-based entity while maintaining its status as a fully owned subsidiary.

This acquisition follows the Board of Directors' approval on March 17, 2026, which authorised the infusion of additional funds up to $2 billion (~₹18,488.10 crore). The move enhances the aggregate investment limit in TSHP to $26.21 billion, allowing for capital deployment in one or more tranches to support the company's global operations.

Transaction specifics

The company subscribed to 393,51,85,186 equity shares of TSHP, each with a face value of $0.0864. The total value of the acquisition stands at $340 million. For accounting and disclosure purposes, the Indian rupee equivalent was calculated using the Reserve Bank of India exchange rate of ₹95.8918 per dollar, published on September 25, 2026.

Strategic context

The infusion is part of Tata Steel's broader strategy to consolidate its international holdings under T Steel Holdings Pte. Ltd. By increasing the aggregate investment limit to $26.21 billion, the parent company retains flexibility to deploy further capital as needed for operational requirements or expansion initiatives within its foreign subsidiary structure.

The disclosure was made in compliance with Regulation 30 and Regulation 51, read with Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.