Neelachal Ispat Nigam Ltd. - Latest News Update, Information, Photos & Videos on Neelachal Ispat Nigam Ltd. at Lokmat Times

New Delhi, Feb 7 The acquisition of Neelachal Ispat Nigam Ltd (NINL) by Tata Steel's subsidiary Tata Steel Long Products (TSLP) is credit positive, said Moody's Investors Service on Monday.Tata Steel, on January 31, announced that its 74 per cent-owned subsidiary TSLP will acquire a 93.7 per cent stake in NINL for Rs 121 billion ($1.6 billion)."The acquisition will give TSL access to NINL's 1.1 million tonnes per annum (mtpa) of long-steel producing capacity, 100 million tonnes of iron ore reserves and 2,500 acres of land. Still, NINL is loss-making and we believe the acquisition price largely reflects the steel plant, iron ore reserves and the land acreage that can accommodate capacity expansions," Moody's Investors Service said in a note."And, while the acquired operations are substantially smaller than TSL's current global capacity of 32.5 mtpa, including its 19.6 mtpa capacity in India, it is credit positive because it will increase TSL's long-steel product capacity and increase its reserves of iron ore."Besides, the note said that acquiring NINL's additional 100 million tonnes (mt) of iron ore enriches TSL's already large reserve."Additionally, NINL's proximity to TSL's Kalinganagar operations will provide operational and logistic synergies, resulting in cost savings."TSL expects to fund the acquisition through a combination of internal accruals and debt, the note said. "Even assuming the $1.6 billion enterprise value is paid entirely through debt, we estimate TSL's pro forma leverage at September 2021 would climb to '1.8xa¿."'"To the extent the acquisition is funded through internal accruals, the peak pro forma leverage would be less than '1.8x'."Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Home

City

Latest News

Cricket

LT Premium

National

International

Maharashtra

Opinions

Chhatrapati Sambhajinagar

Nagpur

Entertainment

Photos

Business

Technology

Sports

Lifestyle

Social Viral

Lokmat Games

Health

Narendra Modi

Lok Sabha Election 2024

Heatwave In India

Mumbai Water Cut

Maharashtra Lok Sabha Election

IPL 2024

Neelachal Ispat Nigam Ltd.FOLLOW

Neelachal ispat nigam ltd., Latest News

Business :NINL ownership handed over to Tata’s TSLP

International :TSLP's acquisition of NINL credit positive: Moody's Investors Service

New Delhi, Feb 7 The acquisition of Neelachal Ispat Nigam Ltd (NINL) by Tata Steel's subsidiary Tata Steel ... ...