Steel Exchange India Limited , one of the leading integrated steel manufacturers in South India and a trusted name in TMT rebars under the brand SIMHADRI TMT, has announced key capital market developments comprising fresh warrant issuance and conversion of existing warrants, aimed at strengthening the company's capital structure. The Board of Directors approved the fresh allotment of convertible equity warrants through circulation on April 30, 2026, following shareholder approval at the Extra-Ordinary General Meeting held on March 30, 2026, and in-principle approval from National Stock Exchange of India Limited and BSE Limited on April 17, 2026. The developments were intimated to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on May 04, 2026.

Key Capital Market Developments

The two key developments together aggregate to a total capital strengthening of ₹40.32 crore, comprising a fresh warrant allotment and the conversion of previously issued warrants into equity shares. The following table summarises the key details:

The fresh warrants have been issued at a price of ₹9.45 each, including a premium of ₹8.45 per warrant, against a face value of ₹1 per share. The company received ₹10.40 crore, representing 25% of the total amount payable towards subscription of the warrants. The warrants are convertible into an equivalent number of equity shares within 18 months from the date of allotment. Warrant holders may exercise conversion in one or more tranches upon payment of the remaining 75% of the amount payable against each warrant before the last date of conversion. The company clarified that there is no change in the paid-up equity share capital following the warrant allotment.

Warrant Allottees

The fresh warrants have been allotted to the following entities on a preferential basis:

The warrants have been allotted in electronic form and are subject to lock-in provisions as per SEBI ICDR Regulations.

Management Commentary

Commenting on the developments, the management of Steel Exchange India Limited stated: "The warrant allotment and subsequent conversion represent a strategic step in strengthening our capital base and enhancing financial flexibility. This positions us well to scale operations, improve supply chain efficiencies and pursue growth opportunities across the steel value chain, while continuing to build long-term value."

These developments are aimed at enhancing the company's ability to support operational expansion, improve working capital efficiency, and pursue strategic growth opportunities. Steel Exchange India Limited, part of the Vizag Profiles Group, operates an Integrated Steel Plant and Power Unit in Vizianagaram District, near Visakhapatnam, with facilities housing sponge iron, billet, rolling mill, and power generation capacities. The company is also diversifying into specialty steels under the PLI scheme in line with the 'Atmanirbhar Bharat' vision.

Steel Exchange India Limited has successfully completed the allotment of 2,82,97,870 equity shares upon conversion of warrants on April 30, 2026, marking a significant capital expansion for the integrated steel manufacturer. The Board of Directors approved the allotment through circulation, following the warrant holder's payment of the balance consideration aggregating to Rs. 29,92,49,975/-.

Warrant Conversion Details

The conversion process involved Ms. Gunakala Vijayalakshmi, classified as a Non-Promoter Group investor, who exercised her rights to convert all outstanding warrants into equity shares. The warrant holder paid the balance consideration of Rs. 29,92,49,975/- (Rupee Twenty-nine crores Ninety-two Lakhs Forty-nine Thousand and Nine Hundred and Seventy-Five Only) to complete the conversion process.

Capital Structure Impact

The warrant conversion has resulted in a substantial increase in the company's share capital structure. Following the allotment, Steel Exchange India's issued, subscribed, and paid-up share capital increased from Rs. 1,24,72,20,542/- to Rs. 1,27,55,18,412/-, reflecting the company's expanded equity base.

Regulatory Compliance and Share Rights

The allotment was conducted in compliance with Regulation 30 and other applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The newly allotted equity shares will be issued in dematerialized form and shall rank pari passu with the existing equity shares of the company in all respects.

The original warrant allotment took place on October 31, 2024, on a preferential basis to the Non-Promoter Group, following approval from shareholders in their Annual General Meeting held on September 27, 2024. With the complete conversion of all 2,82,97,870 warrants, no warrants remain outstanding for future conversion.

The company has informed both BSE Limited (Scrip Code: 534748/960441) and National Stock Exchange of India Limited (Scrip Code: STEELXIND) about this development, ensuring full regulatory compliance and transparency in the capital restructuring process.