Financial Daily from THE HINDU group of publications
Tuesday, Oct 26, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate - Mergers & Acquisitions


Indian Seamless to merge 2 group cos

Our Bureau

Pune , Oct. 25

THE Pune-based Indian Seamless group has decided to merge Indian Seamless Metal Tubes Ltd (ISMT) with Indian Seamless Steels and Alloys Ltd (ISSAL). It has been decided to name the new company as ISMT Ltd.

According to an official communication, the merger is expected to result in a saving of about Rs 5-8 crore from reduction in fixed costs of common functions, in banking transaction costs and in operating costs in respect of procurement, inventories, etc. In addition, it would provide a hedge for ISSAL foreign currency loans and would result in generating a bigger and robust balance sheet.

It noted that the merged entity would be able to position itself as a strong steel-tube manufacturer and this would help in improving its global image and competitiveness. In addition, the combined business operations would insulate the steel business from the cyclical impact.

According to the release, the combined gross sales touched Rs 647.83 crore and cash profit of Rs 33.81 crore. The profit before tax stood at Rs 16.91 crore and operating profit at Rs 80.35 crore.

The combined entity will have a tax shield of over Rs 700 crore and hence will not be required to pay any tax beyond the minimum tax for the next few years.

More Stories on : Mergers & Acquisitions | Steel

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Grim reminder


Siemens sets up corporate tech research centre in Bangalore
Tata Motors launches Indica, Indigo cars in South Africa
USFDA nod for Aurobindo Pharma drug application
Ranbaxy gets FDA nod
Coimbatore seeking outsourcing offers in manufacturing
International Travel House Q2 net at Rs 1.26 cr
Indian Seamless to merge 2 group cos
Ispat Intl in $17.8-b deal to form Mittal Steel — To merge with LNM Holdings, ISG
L&T looking for acquisitions in engg services, hydrocarbons
Malaysia's CNI plans manufacturing plant in India
Century Plyboards' cement unit may go on stream next month
Sundram Fasteners forms jt venture with Bleistahl
Standard Motor land up for sale
`FACT revival hinges on State Govt'
Madhucon fastest growing construction company: Study



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line