Tata Steel Acquires 14.28% Stake in IFQM

On June 25, 2024, Tata Steel Limited announced that it had acquired 12.5 million equity shares of the Indian Foundation for Quality Management (IFQM) at ₹10 each, totalling ₹12.5 crore and representing a 14.28% stake. IFQM notified Tata Steel of the share allotment on June 25, 2024, though the shares were allotted on June 2, 2024. This disclosure is in accordance with SEBI regulations.

This acquisition is a related party transaction. Indian Foundation for Quality Management is a private limited company U/S 8 of the Companies Act 2013. Mr Natarajan Chandrasekaran, Chairman of Tata Steel, is also on the Board of Directors of IFQM, making it a related party to Tata Steel Limited.

IFQM was created to help Indian organisations across various sectors adopt and integrate quality values, principles, and practices in all management areas.

Recently, Tata Steel announced, that the UK government is paying Tata Steel £500 million to help transition its Port Talbot plant from coke-powered blast furnaces to electric arc furnaces (EAFs). This move aims to reduce carbon emissions by 85% and save thousands of jobs. The investment comes as Tata Steel UK faces economic challenges, including losses, Brexit, and competition from cheap Chinese steel.

About Indian Foundation for Quality Management (IFQM)

Indian Foundation for Quality Management (IFQM) is a not-for-profit company established on September 6, 2023, under Section 8 of the Companies Act, 2013. Its main goal is to lead and drive positive changes in the Indian industry. As IFQM has not yet started operations, there are no financial details such as turnover or profit after tax available.

About Tata Steel Ltd

Established in 1907, Tata Steel Ltd is Asia’s first integrated private steel company. It is involved in every stage of the steel production process, from mining and processing iron ore and coal to manufacturing and distributing finished steel products. The company aims to boost its domestic steelmaking capacity to 30 million tonnes annually by 2025.

On June 26, 2024, Tata Steel Ltd’s share price opened at ₹175.68, touching the day’s high of ₹ 176.00 as of 09:16 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.