By a Staff Reporter: Kirloskar Ferrous Industries Ltd will buy 51.25% stake in ISMT Ltd for 4.8 bln rupees through preferential allotment of 154 mln shares at 30.95 rupees per share.
The acquisition will help the company to bring cost efficiencies in the value chain and integrate iron ore and seamless tubes at a consolidated level, it said in a release.
ISMT manufactures specialised seamless tubes in the range of 6-273 mm diameter. The company has an alloy steel plant in India that produces a wide range of alloy steels from 20 to 225 mm diameter.
Of the 51.25% stake, Kirloskar Ferrous has made an open offer to acquire up to 25.05% stake in ISMT.
The company has set the offer price at 31.84 rupees per share and will acquire up to 75.3 mln shares through open offer. The acquisition of stake through open offer will cost Kirloskar Ferrous about 2.4 bln rupees.
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