Tata Steel to Invest ₹21,411 Crore in Singapore Unit for Overseas Expansion

Tata Steel has decided to infuse up to $2.5 billion (around ₹21,410.95 crore) into its wholly owned subsidiary, T Steel Holdings Pte. Ltd. (TSHP), based in Singapore. The investment will be made through equity share subscriptions in one or more phases during the financial year 2025-26.

As of 10:14 AM on May 13, 2025, Tata Steel share price was trading at ₹150.77, a 0.57% decrease,  with an 8.46% rise over the past six months and a 7.87% drop over the past year.

Reason for the Fund Injection

The proposed funds will be used by TSHP for debt repayment, ongoing business operations, and restructuring-related expenses across its subsidiaries. Tata Steel will continue to hold a 100% equity stake in TSHP after the infusion.

About TSHP and Its Financials

TSHP, incorporated on July 5, 2006, in Singapore, serves as an investment holding company. Tata Steel routes its overseas investments through this entity. The financials of TSHP for the past three financial years are listed below:

TSHP Financial Overview (₹ crore)

Regulatory Requirements

Since the total proposed overseas investment exceeds $1 billion, prior approval from the Reserve Bank of India (RBI) is required under the Foreign Exchange Management (Overseas Investment) Directions, 2022. Tata Steel has confirmed it will obtain the necessary approvals before proceeding.

Transaction Structure

The transaction will be executed against cash consideration. Shares will be subscribed at fair value. This is an exempt related party transaction as TSHP is a wholly owned subsidiary. The infusion is expected to be carried out during FY 2025-26 in multiple stages.

Read more: Tata Steel Acquires 16.66% Stake in Indian Foundation for Quality Management

Conclusion

Tata Steel will maintain full ownership of TSHP after the investment. The funds are meant to support the financial and operational needs of its overseas network through its holding company.

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