Tata Steel : Acquisition of Bhushan Steel Limited

TATA

May 18, 2018

The Secretary, Listing Department BSE Limited

The Manager, Listing Department

Phiroze Jeejeebhoy Towers, Dalai Street,

National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1,

Mumbai - 400 001. Maharashtra, India.

G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051.

Maharashtra, India.

Scrip Code: 500470/890144

Symbol: TATASTEEL/TATASTEELPP

Dear Madam, Sirs,

Sub: Press Release

Please find enclosed the press release titled "Acquisition of Bhushan Steel Limited".

This disclosure is being made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This is for your information and records.

Thanking you.

Yours faithfully, Tata Steel Limited

Oat

aotAA

rs. Anita Kalyani Interim Company Secretary

Encl: As above

TATA STEEL LIMITED

Registered Office Bombay House 24 Homi Mody Street Mumbai 400 001 India

Tel 91 22 6665 8282 Fax 91 22 6665 7724 websitewww.tatasteel.com

Corporate Identity Number L27100MH1907PLC000260

for immediate use

PRESS RELEASE

ACQUISITION OF BHUSHAN STEEL LIMITED

Mumbai, May 18, 2018: Tata Steel Limited ('Tats Steel') hereby announces that Bamnipal Steel Limited ('BNPL'), a wholly-owned subsidiary of Tata Steel has successfully completed the acquisition of controlling stake of 72.65% in Bhushan Steel Limited ('BSL') in accordance with the approved Resolution Plan under the Corporate Insolvency Resolution Process ('CIRP') of the Insolvency and Bankruptcy Code 2016 ('IBC') which has been managed by Mr. Vijaykumar V. lyer, Partner, Deloitte Touche Tohmatsu India LLP in his capacity as the resolution professional.

The admitted CIRP cost and employee dues have been paid, as required under IBC. Further, settlement of the amounts equivalent to Rs. 35,200 crore towards financial creditors of BSL is being undertaken as per the terms of the resolution plan and corresponding transaction documents. Rs 1,200 crore will be paid to the operational creditors of BSL over a period of 12 months as per their admitted claims and as per the terms of the approved Resolution Plan.

The investment from BNPL in BSL has been done through a combination of equity of Rs 158.89 crore and inter-corporate loan of Rs 34,973.69 crore. Additionally, Rs 100 crore has been paid by BNPL to the financial creditors of BSL as consideration for novation of remaining financial debt of BSL.

The acquisition is being financed through a combination of external bridge loan of Rs 16,500 crore availed by BNPL and balance amount through investment by Tata Steel in BNPL. The bridge loan availed by BNPL is expected to be replaced by debt raised at BSL over time.

Pursuant to the acquisition, the nominees of BNPL have been appointed on the board of BSL and the existing directors of BSL are deemed to have resigned from its board as per the terms of the approved resolution plan.

As per the Resolution Plan approved by NCLT, BNPL shall be classified as the 'promoter' of BSL, and the existing promoters / promoter group shall be re-classified from 'promoters' / 'promoter group' to public shareholders of BSL for the purposes of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

About Tata Steel

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27.5 million tonnes per annum (MTPA) as on March 31, 2017. It is the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. The Group recorded a consolidated turnover of US $18.12 billion (INR 117,420 crore) in FY17. Tata Steel Group is spread across five continents with an employee base of nearly 70,000. Having bagged the Deming Application Prize and Deming Grand Prize for continuous improvement in 2008 and 2012 respectively, Tata Steel has now been recognised as the global 'Industry Leader' in 'Steel

TATA STEEL LIMITED

Registered Office Bombay House 24 Homi Mody Street Fort Mumbai 400 001 India

Tel 91 22 6665 8282 Fax 91 22 66657724

Corporate Identity Number L27100MH1907PLC000260 Websitewww.tatasteel.com

for immediate use

PRESS RELEASE

category' by Dow Jones Sustainability Index (2015). Besides being a member of the World Steel Climate Action Programme, Tata Steel has also been felicitated with several awards including the Prime Minister's Trophy for the best performing integrated steel plant for 2013-14 (received in 2017), Best Risk Management by CNBC TV18 (2016), 'Best-in- class Manufacturing' award from TIME India (2016) and the 'Most Ethical Company' award from the Ethisphere Institute (2016), IIM Sustainability Award (2015), among several others.

Disclaimer

Statements in this press release describing the Company's performance may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company's operations include, among others, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/ or other incidental factors.

Kulvin Suri

Chief, Corporate Communications, India & SEA Tata Steel

E-mail:kulvinsuri@tatasteel.com