TATA Sponge : Subsidary of TATA Steel

• TATA Steel holds 54.5% of TATA Sponge.
• Manufactures sponge iron + produces power.
• Receives oron ore from TATA steel.
• Cost of Iron ore and coal constitutes 85% of production.
• Market cap: Rs.377 Crores
• Debt : Nil
• Cash balance : Rs.234 Crores => 62% of market value is in cash.
• 40% discount to book value.
• TATA Steel bought 11.26% stake from share holders by open offer for Rs.375/share. Current price is Rs.252.