M&A
Kirloskar Ferrous acquires 51% in distressed steelmaker ISMT for Rs.477-Cr
Publicly-listed Kirloskar Ferrous Industries Ltd (KFIL) is to acquire a 51.25% stake in fellow Pune-based listed entity Indian Seamless Metal Tubes (ISMT) Ltd, for INR 476.63 crore. It will subscribe to 15.4 crore shares via a preferential allotment at INR 30.95 apiece. KFIL will also launch an open offer for an additional 25.05% of the resultant voting capital of ISMT. The distressed ISMT will avail an unsecured loan of INR 194 crore from KFIL, simultaneously with the completion of the share subscription. While KFIL makes castings and pig iron, ISMT is an integrated specialized seamless tube manufacturer, with a domestic alloy steel plant.
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