Kirloskar Ferrous Surges Up to 10% On Acquiring Micro-Cap Steel Producer

By Malvika Gurung

Investing.com — Shares of the main pig iron and gray iron castings producer Kirloskar Ferrous (BO:) surged 7.02% to Rs 200.5 apiece at 11:13 am, after zooming nearly 10% earlier within the session on Friday.

The inventory surge got here after the corporate introduced finishing the acquisition of a majority stake within the particular engineering steels Indian Seamless Metallic Tubes (ISMT) for Rs 670 crore.

The inventory of Kirloskar Ferrous will not be the one one rising on Friday put up the acquisition announcement however shares of ISMT (NS:) additionally surged 5% to Rs 55.4 apiece on the time of writing.

The deal between the 2 corporations, introduced in November 2021 entails Kirloskar Ferrous investing Rs 670 crore in ISMT, states PTI.

Of this sum, the fairness funding for 51.25% stake in ISMT prices Rs 476.63 crore, whereas Rs 194 crore is an ‘unsecured mortgage to the tube producer’, acknowledged the businesses in a submitting.

As per Sebi’s takeover norms, the transaction between the 2 additionally permits an open supply for buying as much as 25.05% stake in ISMT, value Rs 239.7 crore.

The proceeds of the transaction might be used to settle ISMT’s loans of about Rs 3,359 crore, acknowledged the PTI report.