Mumbai, July 4 :    Mumbai, July 4:  Tata Steel has picked up 21.37 lakh shares of Kalimati Investment Company as part of a rights issue by the steel major's wholly owned investment subsidiary. The shares, each with a face-value of Rs 10, have been purchased at a premium of Rs 240 in a deal that is designed to lower the interest cost of its arm. Kalimati said the rights issue was made after taking into account the long-term requirement of the company - which is to cut down the rising interest burden. By virtue of the rights issue, the interest and financial charges on fixed loans have been compressed to Rs 3.95 crore for the year ended March 31, 2002 against Rs 4.80 crore last year. Kalimati has maintained the dividend at the rate of 50 paise per share, which will entail an outgo of Rs 71.35 lakh. The company holds stakes in several Tata companies, including the group's main holding company, Tata Sons. Its investment in Tata Sons - 12,375 shares - has been valued at Rs 68.75 crore. It has also poured some money in Tata Industries, the group's firm for new-economy ventures. The total value of its investments stand at Rs 138 crore compared with Rs 137.95 crore last year. During the year, the company has sold long-term investments worth Rs 260.24 lakh. It made a profit of Rs 185.82 lakh by selling these investments. It has made fresh investments worth Rs 441.92 lakh during the year. Tata Steel has managed to reduce its own interest burden significantly. The steel major has restructured its debt portfolio by pre-paying some of the high-interest loans and raising new ones with lower coupon rates. The effect of this could be seen in lower gross interest charges of Rs 419.16 crore as against Rs 481.90 crore in the previous year. The company exercised its call option and redeemed on November 1st, 2001 the secured redeemable non-convertible bonds of Rs 500 crore issued in 1996, along with accrued interest of Rs 212 crore, together aggregating Rs 712 crore, the largest single redemption of any debt in the history of the company.