Mideast Integrated Steels Limited has approved the disposal of its entire shareholding in Mesco Steels Limited to Mesco Mining Limited for ₹1,20,55,000. The Board of Directors sanctioned this related party transaction during a meeting held on May 30, 2026, to monetize non-core financial investments and optimize liquid cash flows. The sale involves the divestment of 250,000 equity shares, representing an 18.78% stake in the paid-up equity share capital of Mesco Steels Limited.

The transaction constitutes a Related Party Transaction as both the buyer and the target entity belong to the Mesco Group and share common promoters and directors. The deal will be executed at arm's length based on an independent valuation report. The company expects the sale to be completed within 30 days. Mesco Steels Limited reported a turnover of NIL in the last audited FY 2024 and operates in the iron and steel manufacturing, mining, and allied metallurgical activities sector.

Key Transaction Details

In addition to the investment disposal, the Board approved a proposal to change the company's corporate name, subject to regulatory clearance and shareholder consent. The Board sanctioned the convening of an Extraordinary General Meeting (EGM) to seek approval for the name change and the related party transaction. The name change requires confirmation from the Ministry of Corporate Affairs (MCA) or Registrar of Companies (ROC) and ratification by shareholders via a Special Resolution, alongside alterations to the Memorandum of Association and Articles of Association.

MidEast Integrated Steels Limited has reported its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The company disclosed a net loss for the period, citing ongoing legal matters and the non-provisioning of certain compensation amounts as key factors impacting its financial position.

For the quarter ended March 31, 2026, the company reported a standalone total income from operations of ₹59.77 million. It recorded a net loss of ₹263.96 million for the quarter after tax. For the full year ended March 31, 2026, the standalone total income from operations was ₹513.42 million, with a net loss of ₹1,072.29 million after tax. On a consolidated basis, the total income from operations for the year stood at ₹5,677.59 million, with a net loss of ₹1,316.40 million after tax.

The Board of Directors approved the financial results during its meeting held on May 30, 2026. The company attributed the financial performance to significant legal and regulatory challenges. Specifically, the company noted that it has not made provisions for a compensation amount of ₹924.75 crores ordered by the Supreme Court of India in 2017, along with associated interest. The company stated that its mines were ordered to stop operations in January 2018 due to non-payment of this compensation by the stipulated date.

Furthermore, the company mentioned that a curative petition filed against the 2017 judgment was dismissed during the reporting quarter. Additionally, regarding an arbitration award of ₹718 crores received in June 2019, the company has appealed the decision in the High Court. Management stated it is confident of winning the appeal and has therefore not made any provision for this amount in its books.

The following table summarizes the standalone and consolidated financial results for MidEast Integrated Steels Limited for the quarter and year ended March 31, 2026:

The financial results were reviewed by the Audit Committee and subsequently approved by the Board. The complete audited financial results are available on the company's website and the stock exchange platforms.