Tata Steel Subsidiary Divests Entire Stake in Ceramat Private Limited for ₹99.99 Lakh

1 min read     Updated on 18 Aug 2025, 08:22 PM
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Jubin VergheseBy ScanX News Team
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Overview

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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*this image is generated using AI for illustrative purposes only.

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.

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Tata Steel Secures Favorable Ruling in ₹25,185 Crore Tax Reassessment Case

1 min read     Updated on 17 Aug 2025, 06:35 PM
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Reviewed by
Radhika SahaniBy ScanX News Team
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Overview

Tata Steel received a favorable ruling from the Bombay High Court in a tax reassessment case. The court set aside a show cause notice and subsequent assessment order related to a ₹25,185.51 crore loan waiver for Tata Steel BSL Limited for the Assessment Year 2019-20. The notice was annulled on technical grounds, as it was issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer. While providing immediate relief, the court noted that if tax authorities revive the matter in the future, it will be adjudicated on its merits.

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*this image is generated using AI for illustrative purposes only.

Tata Steel , one of India's leading steel manufacturers, has received a favorable ruling from the Bombay High Court in a significant tax reassessment case. The court has set aside a show cause notice and subsequent assessment order related to a ₹25,185.51 crore loan waiver in favor of Tata Steel BSL Limited for the Assessment Year (AY) 2019-20.

Case Background

The case revolves around a show cause notice issued by the Assessing Officer, Office of the Deputy Commissioner of Income Tax, Circle 2(3)(1), Mumbai. The notice was in connection with the waiver of a ₹25,185.51 crore loan in favor of Tata Steel BSL Limited, which has since merged with Tata Steel. The tax authorities sought to reassess Tata Steel's taxable income for AY 2019-20, potentially increasing the taxable amount by the waived debt amount.

Court Proceedings and Ruling

Tata Steel filed a writ petition with the Bombay High Court, challenging the authority of the Assessing Officer in conducting the reassessment. The court heard the matter and subsequently issued its ruling.

The Bombay High Court's decision set aside the show cause notice and all subsequent proceedings or orders arising from it. The court annulled the notice on technical grounds, citing that it was issued by the Jurisdictional Assessing Officer instead of the statutorily mandated Faceless Assessing Officer.

Implications and Future Considerations

While this ruling provides immediate relief for Tata Steel, the court noted that if precedents change and tax authorities revive the matter in the future, it will be adjudicated on its merits. The court will then consider various other issues raised in challenging the reassessment proceedings.

Company Disclosure

Tata Steel made this disclosure in compliance with Regulations 30 and 51 read with Part A, Para B of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The company's prompt disclosure demonstrates its commitment to transparency and regulatory compliance.

This favorable ruling is likely to be welcomed by Tata Steel's shareholders, as it removes a significant potential tax liability for the company in the short term. However, the possibility of future adjudication on the merits of the case, should tax authorities revive the matter, leaves some uncertainty for the long-term implications of this loan waiver on Tata Steel's tax position.

Historical Stock Returns for Tata Steel

1 Day5 Days1 Month6 Months1 Year5 Years
+1.69%+1.09%-0.67%+17.30%+5.19%+274.29%
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