INSUBCONTINENT EXCLUSIVE:
Kolkata: Tata Steel has acquired an additional 4.19% stake to take its total shareholding to 7.06% in Subarnarekha Port Pvt Ltd (SPPL)
The steel major had entered into a definitive agreement with Creative Ports Development Pvt Ltd in January 2017 to acquire 51% equity shares
in CPPL and develop and operate the port
SPPL, a subsidiary of CPPL is envisaged to carry out the development and operation of the port in Odisha.
In a notice to the stock exchanges
Tata Steel said on Wednesday that it had agreed to subscribe to 4.19% equity shares of SPPL on April 9, 2018
Since Tata Steel had earlier in March 2017 subscribed to 3% equity shareholding in SPPL, this would take its aggregate equity shareholding
in SPPL to 7.06%.
Incorporated in 2008, SPPL is jointly promoted by Ramani Ramaswamy and Ramaswamy Rangarajan and is yet to commence
CPDP had entered into a 34 year concession agreement with government of Odisha to develop and operate the Subarnarekha port as an
all-weather deep draft facility.
Announcing the deal in January 2017, Tata Steel had said the investment to develop the Subarnarekha Port
will address the strategic needs of the company in the future
The deal, it added, was designed to de-risk and optimise the in-bound and out-bound supply chain for its steel plants
The company also said the location of the proposed port made it attractive to structurally enhance the competitive position of Tata
Steel’s Indian operations
With the growth envisaged in Kalinganagar in the future, the company had said its offtake through Dhamra was also slated to increase.
