Kirloskar Ferrous Industries has agreed to acquire a majority stake in Indian Seamless Metal Tubes (ISMT) (Target Company) by subscribing to equity shares of the ISMT through preferential allotment and sole control over ISMT, subject to the approvals of the members of the Company and the Target Company and necessary statutory and regulatory approvals.
The company will subscribe to shares for an aggregate consideration of Rs 476.63 crore at a per share price of Rs 30.95 by the way of preferential allotment. These shares will represent 51.25 percent of the resultant share capital of the Target Company. Further, in accordance with the provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the Company has also commenced an open offer for acquiring up to 25.05 percent of the resultant voting capital of the Target Company.
The board of directors of the company has also approved to seek approval of the Members of the company for increase in the permitted borrowing limits. This acquisition will help the company to bring cost efficiencies in the value chain.
Kirloskar Ferrous Industries (KFIL) was formed with the intention of transforming the high quality Pig Iron and Grey Iron casting industry. With a parent company that possesses a rich 130year manufacturing and engineering legacy, KFIL has been built on a solid foundation of innovation and customer centricity.
| Company Name | CMP |
|---|---|
| Tata Steel | 212.05 |
| JSW Steel | 1239.90 |
| SAIL | 173.50 |
| Jindal Stainless | 787.90 |
| APL Apollo Tubes | 2105.45 |
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