Kirloskar Ferrous Industries (KFIL) has expressed interest for the seamless tube and alloy steel manufacturing assets of Indian Seamless metal tubes ltd (ISMT) with a non-binding offer of Rs6.7bn (~80% haircut to ISMT's outstanding loans). While this is an attempt at forward integrating the existing pig iron assets through the EAF plant of ISMT and leveraging the common customer profile in the automobile industry, we believe that improving the asset quality of ISMT plants will require substantial capital and time. We await clarity on structure of deal, synergies and...