Tata Steel Subsidiary Divests Entire Stake in Ceramat Private Limited for ₹99.99 Lakh
Tata Steel Advanced Materials Limited (TSAML), a wholly owned subsidiary of Tata Steel, has sold its entire stake in Ceramat Private Limited (CPL) to Lionstead Applied Materials Private Limited for ₹99.99 lakh. The transaction involved divesting 90% equity stake and 100% preference stake in CPL. The sale has minimal financial impact on Tata Steel, with CPL's turnover and net worth representing 0.001% and 0.014% of Tata Steel's consolidated figures, respectively. This divestment aligns with Tata Steel's strategy to streamline operations and focus on core businesses.

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Tata Steel , one of India's leading steel manufacturers, has announced a strategic divestment through its wholly owned subsidiary, Tata Steel Advanced Materials Limited (TSAML). The company has sold its entire stake in Ceramat Private Limited (CPL) to Lionstead Applied Materials Private Limited for a consideration of ₹99.99 lakh.
Divestment Details
The transaction, which was approved and completed on August 18, involved the following key aspects:
- TSAML divested its entire 90% equity stake in CPL
- The company also sold its 100% preference stake in CPL
- The buyer, Lionstead Applied Materials Private Limited, is a wholly owned subsidiary of Lionstead Ventures LLP
- Following this divestment, CPL ceases to be a subsidiary of Tata Steel
Financial Impact
The divestment of CPL is expected to have a minimal impact on Tata Steel's overall financial position:
Metric | Amount | Percentage of Tata Steel's Consolidated Figures |
---|---|---|
Turnover | ₹1.73 crore | 0.001% |
Net Worth | ₹12.89 crore | 0.014% |
Regulatory Compliance
Tata Steel has made this disclosure in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The company confirmed that the transaction does not fall under related party transactions, and the buyer is not part of Tata Steel's promoter group.
Conclusion
This divestment appears to be part of Tata Steel's ongoing strategy to streamline its operations and focus on core businesses. While the financial impact of the sale is relatively small compared to Tata Steel's consolidated figures, it demonstrates the company's commitment to optimizing its portfolio of investments and subsidiaries.
Investors and stakeholders will likely be watching closely to see if this move is part of a broader restructuring effort by Tata Steel, and how it may impact the company's long-term growth strategy in the advanced materials sector.
Historical Stock Returns for Tata Steel
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+1.69% | +1.09% | -0.67% | +17.30% | +5.19% | +274.29% |