Kirloskar Ferrous Industries Limited (KFIL) and Indian Seamless Metal Tubes Limited (ISMT) announced that they will commence operations as a merged entity on August 9, 2024.

This merger marks a significant milestone in KFIL’s strategic growth plan. The consolidation aims to leverage synergies, enhance operational efficiency, and create long-term value for all stakeholders. The merged entity will benefit from an expanded product portfolio, increased market reach, and improved financial strength.

KFIL’s Board of Directors approved the merger on November 5, 2022. The National Company Law Tribunal (NCLT) granted its approval on July 24, 2024, marking the successful culmination of this process.

As part of the merger, ISMT shareholders will receive shares of KFIL at a ratio of 17 KFIL shares for every 100 ISMT shares. The Record Date to determine the eligible ISMT shareholders for the equity share issuance of KFIL under the scheme was August 6, 2024.

The merged entity will be led by a seasoned management team drawn from both KFIL and ISMT, ensuring continuity and a smooth transition. The leadership team is committed to driving the company forward with a focus on sustainable growth and long-term success, according to the press statement issued by KFIL mentioned in the press statement. 

Atul Kirloskar, Chairman of Kirloskar Ferrous Industries Limited, said, “This merger is a strategic step towards consolidating our strengths and expanding our capabilities. We are confident that the combined entity will deliver significant value to our customers, shareholders, and employees.”

R.V. Gumaste, Managing Director of KFIL, added, “We are excited about the opportunities this merger presents. By joining forces, we can leverage our collective expertise and resources to drive innovation and growth in the industry.”

Related Topics