Earlier in November 2021, share subscription agreement was executed between Kirloskar Ferrous Industries, ISMT and certain promoters forming the promoter group of ISMT. The board of ISMT at its meeting held on 10 March 2022, allotted 15,40,00,000 equity shares of ISMT having a face value of Rs 5 each, at a price of Rs 30.95 per equity share, to Kirloskar Ferrous for an aggregate consideration of Rs 4,76,63,00,000. The deal also involves unsecured loan of Rs 194 crore to ISMT.
Consequently, Kirloskar Ferrous announced that it has acquired a controlling interest and holds 51.25% in Indian Seamless Metal Tubes. ISMT has now become a subsidiary of Kirloskar Ferrous with effect from 10 March 2022. Furthermore, with effect from 10 March 2022, Kirloskar Ferrous has been classified as the promoter of ISMT.
ISMT is one the largest integrated specialized seamless tube manufacturer in India. It is one of the most diversified manufacturers of specialized seamless tubes in the world, producing tubes in the range of 6 to 273 mm diameter.
Kirloskar Ferrous Industries is a leading pig iron manufacturer in India and producer of grey iron castings.
The company's standalone net profit declined 31.18% to Rs 81.43 crore in the quarter ended December 2021 as against Rs 118.32 crore during the previous quarter ended December 2020. Sales rose 58.14% YoY to Rs 933.20 crore in Q3 FY22.