IMFA to Acquire Tata Steel’s Ferro Alloys Plant for Rs 610 Crore

The Board of Directors of Indian Metals & Ferro Alloys Ltd, at its meeting on November 4, 2025, approved an Asset Transfer Agreement (ATA) with Tata Steel Limited. The agreement is for the purchase of a Ferro Alloys Plant located in Kalinganagar, Odisha. The board also approved the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025, and declared an interim dividend for the financial year ending March 31, 2026.

The acquisition has a base purchase consideration of Rs 610 crores, payable in cash. Additional costs include applicable GST and the value of Net Working Capital (NWC) taken over on the closing date. The board also declared an interim dividend of INR 5 per equity share on a face value of INR 10 each. The record date for the dividend is set for November 11, 2025, with payment scheduled on or before December 3, 2025.

The transaction involves the acquisition of the assets and other specified interests of the Ferro Alloys Plant of Tata Steel Limited. The plant is situated at Kalinganagar, District Jajpur, Odisha. The filing states the acquisition is part of the company’s strategy to expand capacity in its Ferro Alloys Business. The document also notes locational advantage and cost synergies due to the plant’s proximity to the company’s captive mines and its upcoming project in Kalinganagar.

The completion of the acquisition is subject to the fulfillment of conditions precedent specified in the ATA. The transaction requires approvals from governmental and regulatory bodies, including the Ministry of Environment, Forest and Climate Change. The indicative time period for the completion of the acquisition is between three to six months, contingent upon the receipt of all statutory approvals.

The agreement is between Indian Metals & Ferro Alloys Ltd and Tata Steel Limited. The filing confirms that the acquisition does not fall within related party transactions. It also states that the promoter, promoter group, or group companies have no interest in the assets being acquired. The transaction is structured as an asset transfer, not a shareholding or control acquisition.

For the second quarter ended September 30, 2025, the company reported consolidated revenue from operations of INR 719 crore, compared to INR 692 crore in the same quarter of the previous year. Profit before tax for the quarter was INR 131 crore, against INR 170 crore year-over-year. The profit for the period stood at INR 98 crore, compared to INR 125 crore for the quarter ended September 30, 2024. The consolidated Basic Earnings Per Share (EPS) was INR 18.07.

Tata Steel Limited is a global steel manufacturing company with a presence across the steel value chain. The company’s business involves the production and distribution of a portfolio of steel products for sectors including automotive, construction, and consumer goods.

Indian Metals & Ferro Alloys Ltd is a producer of ferro alloys, primarily ferro chrome. The company has integrated operations that include captive mining of chrome ore and captive power generation to support its manufacturing activities.