Steel Exchange India Limited has successfully completed the allotment of 31,74,60,300 convertible equity warrants worth ₹300 crore to IMR Group entities on April 20, 2026. The company received ₹74,99,99,958.75 as the initial 25% subscription amount towards these warrants, which are convertible into equivalent equity shares within 18 months.

Warrant Allotment Details

The Board of Directors approved the allotment through a circular resolution on April 20, 2026, following shareholder approval at the Extra-Ordinary General Meeting held on March 30, 2026. The warrants were issued at ₹9.45 per warrant, including a premium of ₹8.45 each.

IMR Group Investment Distribution

The warrants were equally distributed between two IMR Group entities, each receiving 15,87,30,150 warrants. Both entities are classified as non-promoter investors in this preferential issue.

Regulatory Compliance and Approvals

The allotment was completed following comprehensive regulatory approvals, including in-principle approval from both NSE and BSE on April 17, 2026. The warrants are issued in electronic form and subject to lock-in provisions as per SEBI ICDR Regulations.

Strategic Partnership Impact

IMR Group, a leading international metals and mining conglomerate with presence in over 17 countries, brings significant expertise in steel industry value chain operations. The partnership provides Steel Exchange India access to global sourcing of key raw materials including metallurgical coke, coking coal, and ferrous scrap.

The warrant holders can exercise conversion rights at any time during the 18-month period in one or more tranches, upon payment of the remaining 75% amount. The company's paid-up equity share capital remains unchanged until warrant conversion occurs.

Company Profile

Steel Exchange India Limited, part of the Vizag Profiles Group, operates as an integrated steel manufacturer under the 'SIMHADRI TMT' brand. The company has manufacturing facilities in Vizianagaram District with sponge iron, billet, rolling mill, and power generation capacities.

Steel Exchange India Limited has announced that it successfully repaid approximately ₹28 crores in debt over the last two quarters, demonstrating strong financial discipline and reinforcing its commitment to balance sheet strengthening and financial resilience.

Debt Repayment Breakdown

The company executed a scheduled partial redemption during the period, systematically reducing its debt burden across multiple financial instruments.

These credit facilities, including term loans and NCDs, were originally availed to support the company's operational requirements and growth initiatives.

Financial Strategy and Impact

The consistent debt reduction progress highlights several key aspects of Steel Exchange India's financial management approach:

• Improved cash flow generation capabilities
• Prudent capital allocation strategies
• Enhanced financial resilience through deleveraging
• Reduced finance costs supporting profitability
• Greater operational flexibility for future growth opportunities

Management emphasized their focused approach towards debt reduction, stating that it reflects the strength of their operations and commitment to building a robust and sustainable financial profile.

Company Performance Overview

Steel Exchange India Limited operates as part of the Vizag Profiles Group and serves as a leading manufacturer of TMT rebars under the 'SIMHADRI TMT' brand. The company has established itself as one of the most trusted integrated steel manufacturers in Andhra Pradesh and Telangana.

Operations and Market Position

The company operates an integrated steel plant and power unit in Vizianagaram District, near Visakhapatnam. These facilities encompass comprehensive production capabilities including sponge iron, billet, rolling mill, and power generation capacities, enabling complete backward and forward integration for long steel production.

Steel Exchange India has established a strong brand presence with a proven supply track record to the Armed Forces and critical infrastructure projects. The company is also diversifying into specialty steels under the PLI scheme to support import substitution and expand value-added offerings.