CCI nods Kirloskar Ferrous Industries' majority acquisition in ISMT; Stock zooms ~6%

25 Feb 2022 , 09:28 AM

Competition Commission of India (CCI) has approved the acquisition of a majority stake in ISMT Limited by Kirloskar Ferrous Industries Limited (KFIL), the company said in a filing on Thursday.

Kirloskar Ferrous Industries Ltd. had informed on November 25, 2021, that the company, one of India’s largest castings and pig iron manufacturers, has agreed to acquire a majority stake in Indian Seamless Metal Tubes (ISMT) Limited (Target Company) by subscribing to equity shares of the Target Company through preferential allotment and sole control over ISMT Limited.

KFIL was to subscribe to shares for an aggregate consideration of Rs476.63 crore at a per share price of Rs30.95 by the way of preferential allotment. These shares will represent 51.25% of the resultant share capital of the Target Company.

The company stock was bullish on Friday and at around 9.30 am, Kirloskar Ferrous Industries Ltd was trading at Rs197.60 per share up by Rs10.85 or 5.81% from its previous closing of Rs186.75 per share on the BSE.