Indian Seamless Metal Tubes Ltd. to merge with Indian Seamless Steels and Alloys Ltd.
By Our Corporate Bureau | 06 Jul 2005
Mumbai: The strategic merger between India Seamless Metal Tubes Ltd (ISMT) and Indian Seamless Steels and Alloys Ltd (ISSAL) will create the largest integrated precision seamless tube manufacturing company in the Asia Pacific Region. The merged company is proposed to be named as ISMT Ltd.
The
Mumbai High Court has convened a shareholders' meeting
of both companies to approve the merger on on 1st August,
2005. ISMT is proposed to be merged into ISSAL and the
shareholders of ISMT will be offered five equity shares
in ISSAL for every four shares held in ISMT.
The
merged entity will have a wide range of precision seamless
tubes for 'tier I' suppliers of auto, bearing, and other
engineering OEM's. It will continue using its surplus
capacity to
manufacturing specialised steels for engineering sector
buyers of forging, auto component, mining and other industries.
With an in-house raw material source, the company would be able to achieves higher stability in cost and profitability and is able to position itself better with the international OEMs.
The 155,000-tpa tube capacity of the company is planned to be increased to 200,000-tpa. The 190,000-tpa steel capacity has already been exceeded (the company manufactures 240,000 tpa)