MSP Steel & Power Limited's two promoter group entities have significantly increased their shareholdings through open market purchases, signaling confidence in the company's prospects.

Key Highlights

• Total Shares Acquired: 18,93,400 equity shares
• Acquisition Period: November 28 to December 1, 2025
• Acquiring Entities:
  1. Jaik Leasing Commercial Investment Limited
  2. Shree Vinay Finvest Private Limited

Detailed Breakdown of Share Acquisition

This strategic move by the promoter group entities comes at a time when MSP Steel & Power Limited has shown improvements in its financial position. According to the latest balance sheet data as of March 2025:

• Total Assets: ₹1,530.80 crore
• Shareholders' Capital: ₹976.00 crore
• Reserve & Surplus: ₹318.60 crore

The company has seen a significant improvement in its reserve and surplus position, which turned positive after being negative in the previous year. This turnaround, coupled with the promoters' increased stake, may indicate a positive outlook for the company's future performance.

Impact on Shareholding

While the exact post-acquisition shareholding percentages are not provided for all entities, Jaik Leasing Commercial Investment Limited's holding increased from 5.82% to 5.92% following their purchase.

Market Implications

The substantial share acquisition by promoter group entities often signals confidence in a company's future prospects. For MSP Steel & Power, this move could be interpreted as a positive indicator by the market, potentially influencing investor sentiment and stock performance.

Investors and market analysts will likely keep a close watch on MSP Steel & Power's future financial performance and any further changes in promoter shareholding patterns. As always, stakeholders are advised to conduct their own research and consider multiple factors before making investment decisions.

Note: All financial figures are based on the standalone balance sheet data as of March 2025.

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.