SAL Steel Limited's Board of Directors approved the dispatch of a postal ballot notice to seek shareholder approval for material related party transactions (RPTs) involving Sree Metaliks Limited and Lawrence Merchants Private Limited.

The board meeting held on October 16, 2026, reviewed and approved five items requiring independent ordinary resolutions. These include post-facto ratifications of past loans and purchases, as well as prior approvals for future sourcing, trading, and loan facilities with the related entities.

Transaction Details and Limits

The proposed resolutions cover both historical regularizations and future operational limits for the period from November 20, 2026, to November 19, 2027. The transactions involve raw material sourcing, finished goods sales, corporate guarantees, and unsecured loan facilities.

Note: Item 3 includes up to ₹300 crore for purchases, ₹50 crore for sales, ₹500 crore for corporate guarantees, and ₹200 crore for loans.

Strategic Rationale

The company stated that following the strategic takeover by Sree Metaliks Limited, which now holds a 57.51% equity stake, immediate capital infusion was critical. Funds from past loan lines were utilized to clear backlogs for maintaining old plant machinery and factory modernization.

The prior omnibus trade contracts are intended to guarantee long-term supply security of raw iron ore, the fundamental input for the company's core sponge iron manufacturing plants. The board confirmed that all transactions are on an arm's length basis and in the ordinary course of business.

Voting Process and Timelines

The postal ballot notice will be dispatched electronically to eligible members on October 19, 2026. Remote e-voting will commence on October 20, 2026, at 9:00 am and close on November 18, 2026, at 5:00 pm. The final results and scrutinizer's report will be declared on or before November 20, 2026.

CS Kamlesh M. Shah has been appointed as the scrutinizer to conduct the electronic voting process.

S.A.L Steel Limited board of directors approved an additional term loan facility of ₹75 crore from Kotak Mahindra Bank Limited during a meeting held on October 1, 2026. The borrowing is primarily intended for the part repayment of Inter-Corporate Deposits (ICD) held with AIA Engineering Limited.

The transaction was executed pursuant to the bank's sanction letter dated September 29, 2026. Alongside the new term loan, the company also renewed its existing working capital facilities of ₹49 crore, bringing the total aggregate exposure under this arrangement to ₹124 crore.

Facility terms and security

The new term loan carries an interest rate of 10% and is repayable over a period of 60 months. The facility is secured through the hypothecation of the company's entire current assets and all movable fixed assets situated at its plant in Gandhidham, Gujarat. Additionally, the loan is backed by unconditional and irrevocable personal guarantees from Mahesh Kumar Agarwal and Kaustubh Agarwal. A corporate guarantee from Sree Metaliks Limited also remains valid for the tenure of the facility.

Disclosure details

The company disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirms that Kotak Mahindra Bank Limited holds no shareholding in S.A.L Steel, and the transaction does not constitute a related party transaction. No shares were issued as part of this agreement.

The sanction letter reference number is ARD/006315/2026-27. The disclosure highlights that the security package excludes assets exclusively financed by other banks or financial institutions. The board meeting commenced at 11:00 am and concluded at 12:30 pm. The board authorized Managing Director Kaustubh Agarwal, Non-executive Director Rajesh Mangal, and Chairman Mahesh Kumar Agarwal to execute the necessary facility documents and security deeds.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE658G01014/4cda0fc1-99ad-47f6-b0b2-d88a347fb7f1.pdf