Kirloskar Ferrous Industries Limited (BSE:500245) made an offer to acquire additional 25.05% stake in ISMT Limited (BSE:532479) from public shareholders for INR 2.4 billion on November 25, 2021. Kirloskar Ferrous Industries Limited will acquire 7,52,86,269 shares at price of INR 31.84 per share. Currently, Kirloskar Industries Limited holds 50.93% stake, Other Members of the Promoter and Promoter Group holds 8.03% stake and Public Shareholders holds 41.04% stake in ISMT Limited.

Acquisition will be funded from available cash, cash equivalents, internal accruals and debt raised from third parties. This Open Offer is not conditional upon any minimum level of acceptance. This Open Offer and the Underlying Transactions are subject to the satisfaction of certain conditions precedent (including statutory and regulatory approvals) and the draft letter of offer and the letter of offer, that are proposed to be issued in accordance with the SEBI.

Transaction is subject to Approval from the Competition Commission of India, In-principle approval of the Stock Exchanges to be obtained by ISMT for the issue and allotment of the Equity Shares. The offer commences on January 14, 2022 and closes on January 28, 2022. As of March 17, 2022, offer period has been revised from March 21, 2022 to April 01, 2022.

As of February 23, 2022, the transaction has been approved by Competition Commission of India. As of March 10, 2022, Independent Directors Committee is of the opinion that offer is fair and reasonable and members of Independent Directors Committee have unanimously approved the recommendations. Amit Kumar of Systematix Corporate Services Limited (BSE:526506) acted as financial advisor to Kirloskar Ferrous Industries Limited in the deal.

M Murali Krishna of KFin Technologies Private Limited acted as registrar to Kirloskar Ferrous Industries Limited. Singhi Advisors Limited acted as financial advisor to Kirloskar Ferrous Industries Limited. Unistone Capital Private Limited acted as Fairness opinion provider to ISMT Limited in the transaction.