ISMT locked at 5% UC

The largest integrated manufacturer of precision seamless tubes tubular components and steels in the Asia Pacific Region (erstwhile The Indian Seamless Metal Tubes Limited) ISMT, is in the limelight.

The stock, which closed yesterday at Rs.54.05, opened today at Rs.56.75, hitting the 5% UC of the day immediately. Its 52-week is at Rs.74.35.

The stock is up after Jindal Pipes has made a counter-offer to shareholders of ISMT against Kirloskar Ferrous Industries’ Rs.477 crore offer and an open offer for Rs.240 crore.

Kirloskar’s offer is for acquiring 51.25% stake and also provide unsecured loan of Rs.194 crore.

News is that Jindal Pipes has placed expression of interest for acquiring majority stake in ISMT.

Avenue Capital-backed Asset Reconstruction Company of India and Edelweiss ARC acquired ISMT loan from banks.

Lenders invited bids for their Rs.3,359 crore outstanding loans after receiving a Rs.670 crore non-binding offer from Kirloskar. Till date there was no other bid apart from Kirloskar, which is why they agreed to them and now, with Jindal in the fray, this will become an interesting battle for ISMT shareholders.