Kirloskar Ferrous Industries shoots up ~9% after ISMT allots 15.40 crore equity shares worth Rs476.63 crore to the company

11 Mar 2022 , 09:50 AM

The Board of Directors of ISMT Limited at its meeting on March 10, 2022, has allotted 15.40 crore equity shares of ISMT having a face value of Rs5 each, at a price of Rs30.95 per equity share, to Kirloskar Ferrous Industries Limited (KFIL) for an aggregate consideration of Rs476.63 crore.

At around 9.54 am, Kirloskar Ferrous Industries Ltd was trading at Rs203.60 per share up by Rs16.25 or 8.67% from its previous closing of Rs187.35 per share on the BSE.

The allotment is in terms of the Share Subscription Agreement dated November 25, 2021 (SSA) executed between KFIL, ISMT and certain promoters forming the promoter group of ISMT.

Consequent to the aforesaid allotment of equity shares, KFIL has acquired a controlling interest and holds 51.25% of the issued, subscribed and paid up equity share capital of ISMT and that ISMT has, therefore, become a subsidiary of KFIL with effect from March 10, 2022.

Further, with effect from March 10, 2022, KFIL has been classified as the ‘promoter’ of ISMT, and will be in sole control of ISMT and the Board of Directors of ISMT has been reconstituted, company said in a filing on Thursday.