SAL Steel Announces Major Share and Warrant Allotment to Sree Metaliks

SAL Steel Limited , a prominent player in the steel industry, has disclosed a significant corporate action involving a substantial allotment of shares and warrants to Sree Metaliks Limited. This development marks a notable change in the company's capital structure and potentially its ownership dynamics.

Key Details of the Allotment

The Board of Directors of SAL Steel Limited, in a meeting held on October 30, 2025, approved a preferential allotment to Sree Metaliks Limited. The allotment comprises:

Type of Security	Number Allotted
Equity Shares	1,92,50,000
Warrants	3,57,50,000

This substantial issuance of new securities suggests a strategic move by SAL Steel, potentially aimed at strengthening its capital base or facilitating a significant investment from Sree Metaliks Limited.

Regulatory Compliance

In adherence to regulatory requirements, SAL Steel promptly informed both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) about this development. The disclosure was made in compliance with the Securities and Exchange Board of India (SEBI) insider trading regulations, specifically under Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015.

Implications

While the specific reasons for this preferential allotment have not been detailed in the disclosure, such a significant issuance of shares and warrants often indicates:

A potential strategic partnership or collaboration between SAL Steel and Sree Metaliks.
An effort to raise capital for expansion, debt reduction, or other corporate purposes.
A possible change in the company's ownership structure, depending on the size of the allotment relative to SAL Steel's existing share capital.

Investors and market watchers may be interested in observing how this development impacts SAL Steel's future operations, financial position, and market performance. The conversion of warrants into equity shares, when it occurs, will be another key event to monitor.

Stakeholders are advised to stay informed about any further announcements from SAL Steel Limited regarding the utilization of funds from this allotment and its strategic implications for the company's future.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.99%	+6.00%	+36.63%	+100.78%	+52.90%	+1,327.04%

SAL Steel Limited has announced a significant corporate action, allotting equity shares and convertible warrants to Sree Metaliks Limited on a preferential basis. This move signals a potential shift in the company's ownership structure and an infusion of fresh capital.

Details of the Allotment

The Board of Directors of SAL Steel approved the following allotments to Sree Metaliks Limited:

Type of Security	Number of Securities	Issue Price per Unit	Total Amount
Equity Shares	1,92,50,000	₹18.00	₹34.65 crore
Convertible Warrants	3,57,50,000	₹18.00	₹64.35 crore
Total	5,50,00,000		₹99.00 crore

Key Points of the Transaction

Equity Shares: The company has allotted 1.93 crore equity shares at ₹18.00 per share, which includes a premium of ₹8.00 per share.
Convertible Warrants: 3.58 crore warrants have been issued, each convertible into one equity share within 18 months from the date of allotment.
Warrant Subscription: Sree Metaliks has paid ₹4.50 per warrant (25% of the issue price) as the initial subscription amount, totaling ₹16.09 crore.
Capital Structure Change: Following this allotment, SAL Steel's paid-up equity share capital has increased from ₹84.97 crore to ₹104.22 crore.
Potential Ownership Shift: Upon completion of the transaction and open offer, Sree Metaliks is set to be classified as a promoter of SAL Steel, while the existing promoters will cease to hold that status.
Post-Issue Shareholding: Assuming full conversion of warrants, Sree Metaliks is expected to hold a 37.99% stake in SAL Steel.

Regulatory Compliance

The allotment adheres to various regulatory requirements:

It follows the approval of SAL Steel's shareholders.
The securities are subject to lock-in restrictions as per SEBI regulations.
The equity shares will be credited to an escrow account in compliance with SEBI's Substantial Acquisition of Shares and Takeovers Regulations.

Market Implications

This preferential allotment represents a significant development for SAL Steel, potentially impacting its financial structure and strategic direction. The infusion of ₹99.00 crore, when fully realized, could provide the company with additional capital for growth initiatives or debt reduction.

Investors and market participants will likely monitor how this change in ownership structure might influence SAL Steel's future business strategies and performance in the steel sector.

As the transaction progresses, further details on the open offer and the completion of the share purchase agreement will be crucial for understanding the full impact of this corporate action on SAL Steel's future.