Kirloskar Ferrous Industries Ltd. (KFIL's) announced acquisition of controlling stake (51%) in Indian Seamless Metal tubes (ISMT) at consideration of Rs4.77bn through purchase of ISMT's preferential shares, is an attempt at forward integrating the existing pig iron assets with few other synergies. While we believe in KFIL's plans to turnaround ISMT assets, it will come at additional cost. Completely merging the ISMT business will further need debt or equity dilution. Therefore, we believe that KFIL could have derived a better deal to lighten up medium term liabilities. We lower our TP to Rs310 (previously Rs360) and retain...