13
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 operations.
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.
