Kirloskar Ferrous Industries Limited

Kirloskar Ferrous Industries Ltd agreed to acquire a majority stake in ISMT Limited, largest integrated specialized seamless tube manufacturer, by subscribing to equity shares of ISMT through preferential allotment and sole control over ISMT. The said transaction is subject to the necessary approvals of the shareholders, open offer, CCI approval and other necessary statutory and regulatory approvals.

By way of said acquisition, KFIL intends to right size ISMT's balance sheet, improve its net worth, revive ISMT's business prospects, decrease ISMT's debt obligations and thereby bring operational efficiency and synergy to ISMT's operations. The said acquisition will help KFIL an opportunity to integrate iron ore to seamless tubes at a consolidated level. Further, the said acquisition will widen the the current product portfolio and give access to Target Company's customer base.