Mumbai, March 11 (SocialNews.XYZ) Stocks of pig iron and iron castings manufacturer Kirloskar Ferrous soared on Friday, a day after the company acquired a controlling interest in ISMT (Indian Seamless Metal Tubes).
The company's stocks at the BSE on Friday gained 8.25 per cent, or Rs 15.45, to Rs 202.80 from its previous close.
According to a regulatory filing made to the BSE on March 10, the company said that the Board of ISMT has allotted 15,40,00,000 equity shares to Kirloskar Ferrous.
Consequent to the allotment, KFIL holds 51.25 percent of the issued, subscribed and paid up equity share capital of ISMT.
The equity shares having a face value of Rs 5 each, were allotted at a price of Rs 30.95 per equity share, to KFIL for an aggregate consideration of Rs 476.63 crore.
"We wish to inform that in terms of the 'Share Subscription Agreement' dated 25 November 2021 executed between Kirloskar Ferrous Industries Limited, ISMT and certain promoters forming the promoter group of ISMT, the Board of Directors of ISMT at its meeting held today i.e., 10 March 2022, has 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 KFIL for an aggregate consideration of Rs 4,76,63,00,000."
Besides, ISMT has become a subsidiary of KFIL with effect from March 10, and KFIL has been classified as the "promoter" of ISMT and the Board of Directors of ISMT has been reconstituted.
Source: IANS
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