Indian Metals & Ferro Alloys (IMFA) announced the successful completion of the acquisition of the Ferro Chrome Plant (FAP) from Tata Steel Limited (TSL) located at Kalinganagar, Jajpur, Odisha. This strategic transaction, pursuant to an Asset Transfer Agreement signed on November 4, 2025, is key to IMFA’s growth strategy in its core Ferro Chrome business. The acquisition cost includes a base consideration of ₹610 crores plus applicable GST, alongside the takeover of Net Working Capital.
Completion of Key Asset Acquisition
Indian Metals & Ferro Alloys Limited (IMFA) has confirmed the successful completion of the acquisition of the Ferro Chrome Plant (FAP) owned by Tata Steel Limited (TSL). The plant is situated in Kalinganagar, Jajpur, Odisha. This step formalizes the Asset Transfer Agreement (ATA) executed between the two entities on November 4, 2025.
Acquisition Rationale and Business Impact
The acquisition is described as being fully in line with IMFA’s corporate strategy aimed at driving the next phase of growth within its core Ferro Chrome Business by expanding capacity. The strategic location offers significant locational advantage and cost synergies due to its proximity to IMFA’s captive mines and an upcoming greenfield project in Kalinganagar. This move is expected to augment the company’s ability to cater effectively to new opportunities, with a primary focus on the domestic market.
Financial Details of the Transaction
The consideration paid for the acquisition was structured as a Cash transaction. The total cost involves several components:
- Base Purchase Consideration: Rs 610 crores plus applicable GST of Rs 68.06 crores.
- Net Working Capital (NWC): The takeover includes NWC valued at Rs 29.21 crores, inclusive of applicable GST (NWC is defined as Current Assets less Current Liabilities as specified in the ATA).
The transaction was finalized within the stipulated completion timeline of three to six months as outlined in the ATA.
Regulatory Clearances Obtained
IMFA has secured necessary initial approvals required for the transfer and operation of the assets. These include:
- In-principle approval from IDCO for the transfer of Ac.115.300 of allotted leasehold land from TSL.
- Obtaining the GST Registration Certificate for operating the unit.
- The signing of the Closing memorandum from TSL to formally transfer ownership and possession of the assets.
Furthermore, processes have been initiated to secure final approval from the Ministry of Environment, Forest and Climate Change, Government of India, and the relevant Factory License as per the Factories Act, among other required statutory clearances for full operational readiness.
Source: BSE
