Kirloskar Ferrous Industries Ltd has entered into a Share Subscription Agreement dated 25 November 2021 with ISMT Ltd and certain members of the Promoters Group. Pursuant to agreement, Kirloskar Ferrous Industries will subscribe to 154,000,000 equity shares of INR 5 each by way of preferential allotment. These shares will represent 51.25% of the resultant share capital of the ISMT Ltd. Further, Kirloskar Ferrous Industries has also commenced an open offer for acquiring upto 25.05% of the resultant voting capital of the ISMT Ltd. Kirloskar Ferrous Industries will subscribe to shares for an aggregate consideration of INR 476.63 crores at a per share price of INR 30.95. Further, an unsecured loan of INR 194 crores will be extended to the ISMT Ltd by the Kirloskar Ferrous Industries. The proposed transaction would enable Kirloskar Ferrous Industries to enter the business segment of steel manufacturing and seamless tubes.BSE listed ISMT Limited, earlier known as The Indian Seamless Metal Tubes Limited, was incorporated as a public limited company in the year 1977 and commenced production of seamless tubes in the year 1980. The steel production facility of ISMT Limited is located at Jejuri in Maharashtra, and seamless tube and pipes manufacturing units are located at Ahmednagar and Baramati in Maharashtra. Further, ISMT Limited has a captive power plant (presently not in operation) located at Chandrapur in Maharashtra. ISMT Limited is engaged in the business of manufacturing steel, billets, alloy and carbon casts. It has a total of 10 direct and indirect subsidiaries both in India and abroad.
Kirloskar Ferrous Industries Ltd has entered into a Share Subscription Agreement dated 25 November 2021 with ISMT Ltd and certain members of the Promoters Group. Pursuant to agreement, Kirloskar Ferrous Industries will subscribe to 154,000,000 equity shares of INR 5 each by way of preferential allotment. These shares will represent 51.25% of the resultant share capital of the ISMT Ltd. Further, Kirloskar Ferrous Industries has also commenced an open offer for acquiring upto 25.05% of the resultant voting capital of the ISMT Ltd. Kirloskar Ferrous Industries will subscribe to shares for an aggregate consideration of INR 476.63 crores at a per share price of INR 30.95. Further, an unsecured loan of INR 194 crores will be extended to the ISMT Ltd by the Kirloskar Ferrous Industries. The proposed transaction would enable Kirloskar Ferrous Industries to enter the business segment of steel manufacturing and seamless tubes.BSE listed ISMT Limited, earlier known as The Indian Seamless Metal Tubes Limited, was incorporated as a public limited company in the year 1977 and commenced production of seamless tubes in the year 1980. The steel production facility of ISMT Limited is located at Jejuri in Maharashtra, and seamless tube and pipes manufacturing units are located at Ahmednagar and Baramati in Maharashtra. Further, ISMT Limited has a captive power plant (presently not in operation) located at Chandrapur in Maharashtra. ISMT Limited is engaged in the business of manufacturing steel, billets, alloy and carbon casts. It has a total of 10 direct and indirect subsidiaries both in India and abroad.
