Tata Steel Overseas Investments

Tata Steel (CMP=Rs:393)said on Wednesday, 1 October 2008, its Singapore-based unit has agreed to buy 19.9% stake in Canadian miner New Millennium Capital Corporation for $22.6 million.

The stock has a 52-week high of Rs 969.80 on 29 October 2007 and a 52-week low of Rs 413.10 on 30 September 2008.
The company's current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 432 discounts Q1 June 2008 annualized EPS of Rs 81.47, a PE multiple of 5.30.
Tata Steel has an option to acquire 80% in a joint venture that will develop New Millennium's Direct Shipping Ore (DSO) project, and also hold rights to the entire iron ore output from the project, which is expected to have annual production of four million tonnes from 2010. The DSO project is estimated to hold reserves in excess of 100 million tonnes of direct shipping quality ore, Tata Steel said.
Tata Steel will also have exclusivity until June 2009 to negotiate a transaction for New Millennium's LabMag iron ore property, which holds 3.5 billion tonnes of proven and probable mineral reserves. Tata Steel holds a right-of-first refusal in future equity placement by New Millennium and a pre-emptive right for other equity offers by the company.
Recently, Tata Steel through its indirect subsidiary TS Global Minerals Holdings bought a 7.3% stake in Riversdale Mining, which has a coking coal project in Mozambique.
In August 2008 Tata Steel announced that its overseas unit formed a joint venture with Vietnam Steel Corporation and Vietnam Cement Industries Corporation for a steel complex in Ha Tinh province in Vietnam.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.