Kirloskar Ferrous Industries has taken control of ISMT, RV Gumaste, managing director, told CNBC-TV18, adding that there are no plans for major investments in the acquired company.

Jindal Pipes has withdrawn its petition against Kirloskar Ferrous, which had been filed for the acquisition of the stake in ISMT. Kirloskar had acquired a majority stake in ISMT for Rs 670 crore.

“We have completed the acquisition process and we have taken the management control in ISMT,” said Gumaste.

Talking about debt, he said, “We has less than Rs 200 crore of debt before the acquisition and as we have just completed the process of acquisition, our debt is around Rs 1,000 crore. It will come to around Rs 750-800 shortly and thereafter it should be around Rs 700 crore in the medium-term.”

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Gumaste said that both entities will be merged going forward. However, there are no immediate plans for major investments in ISMT, but looking to improve productivity, profitability and growth.

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First Published:Apr 8, 2022 10:04 AM IST