India’s leading manufacturer of pig iron & grey iron castings Kirloskar Ferrous Industries has picked up a majority stake in specialised seamless tube manufacturer ISMT Limited for INR 670 crore. The deal involves Kirloskar Ferrous Industries investing INR 670 crore in ISMT, of which INR 476.63 crore is equity investment for 51.25% & the balance INR 194 crore is an unsecured loan to the tube manufacturer. Therefore ISMT Limited has become a subsidiary of Kirloskar Ferrous Industries with effect from 10 March 2022.The proceeds will be used towards a one-time settlement of ISMT’s loans of about INR 3,359 crore. The one-time settlement of INR 670 crore was approved by its lenders in February 2022.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.