MSP Steel & Power Limited successfully concluded its Extra-Ordinary General Meeting (EGM) on December 12, 2025, with shareholders overwhelmingly approving the special resolution for convertible warrant fundraising. The company has now submitted the voting results to stock exchanges, marking the completion of the regulatory approval process for its preferential allotment plan.

Voting Results and Shareholder Response

The EGM, conducted through video conferencing at 3:00 PM IST, witnessed strong shareholder participation and support. Ms. Swati Bajaj of M/s. Bajaj Todi & Associates served as the scrutinizer for the voting process.

The remote e-voting facility remained open from December 9, 2025 (9:00 AM) to December 11, 2025 (5:00 PM IST), with the cut-off date for eligible voting set as December 5, 2025.

Fund Utilization Strategy

The approved convertible warrant issue will raise funds through preferential allotment on a private placement basis. The company had earlier issued a corrigendum on December 10, 2025, clarifying the fund utilization plan with specific allocations and timelines.

The unsecured debt repayment involves full or partial settlement of identified loans, while the restructuring scheme payment includes Right to Recompense (ROR) to enable the company's exit from the restructuring framework.

Warrant Allotment and Shareholding Impact

M.A. Hire Purchase Private Limited has been identified as the proposed allottee for the 2,80,00,000 convertible warrants. The ultimate beneficial owners include Mr. Saket Agrawal, Mr. Suresh Kumar Agrawal, and Mr. Pranay Agarwal from the promoter group.

The conversion of warrants will increase the promoter group's stake from 22.87% to 68.87%.

Implementation and Compliance

The company expects to receive the entire issue proceeds within 18 months from the warrant allotment date, in compliance with SEBI (ICDR) Regulations Chapter V. For general corporate purposes, funds will be utilized for modernization and maintenance of plant and machinery, including purchase, refurbishment, replacement, and repairs.

Pending deployment, unutilized proceeds will be invested in permissible short-term investments including government securities, money market instruments, and deposits with scheduled commercial banks. The voting results and scrutinizer's report are available on the company's website at www.mspsteel.com .

MSP Steel & Power Limited (MSPL) has taken a significant step towards financial recovery, receiving approval from major lenders for the payment of Right of Recompense (RoR), paving the way for its exit from the Corporate Debt Restructuring (CDR) framework.

Lender Approvals and RoR Payment

The company announced that key lenders, including State Bank of India (SBI), Bank of Baroda, and Indian Overseas Bank, have approved the RoR amount and issued confirmation letters. These approvals mark a crucial milestone in MSPL's journey towards financial stability and growth.

Background of Debt Restructuring

MSPL's borrowings were initially restructured under a CDR package led by SBI during the financial year 2014-2015. Subsequently, in FY 2017-2018, the package underwent further restructuring under the Scheme for Sustainable Structuring of Stressed Assets, with the consortium of lenders extending concessions to the company.

Calculation and Approval Process

As per the restructuring terms and RBI guidelines, MSPL became liable to pay the Right of Recompense to the lenders upon improvement in its financial performance. The consortium of lenders, led by SBI, appointed a consultant to calculate the RoR amount. Based on this calculation, the aforementioned banks have approved the RoR amount.

Board Approval and Next Steps

MSPL's Board of Directors approved the payment of RoR to all consortium lenders in a recent board meeting. The company is awaiting approvals from the remaining lenders, which are expected shortly. Upon receiving these approvals, MSPL will proceed to complete the payment to all lenders.

Implications for MSPL's Future

The exit from the CDR framework represents a significant milestone in MSPL's turnaround journey. The company stated that this development is expected to create new opportunities for growth and expansion. By fulfilling its RoR obligation, MSPL demonstrates its improved financial health and commitment to meeting its financial responsibilities.

Conclusion

As MSPL prepares to close this chapter of financial restructuring, the company looks forward to a future of potential growth and expansion. The successful exit from the CDR framework, once completed, will mark a new beginning for MSP Steel & Power Limited in its ongoing journey of financial recovery and business development.