Sree Metaliks Acquires 39.30% Stake in SAL Steel Through Preferential Allotment

Sree Metaliks Limited has made a significant move in the steel industry by acquiring a 39.30% stake in SAL Steel through a preferential allotment. This strategic acquisition involves both equity shares and convertible warrants, potentially reshaping the ownership structure of SAL Steel.

Transaction Details

Particulars	Details
Equity Shares Acquired	1,92,50,000
Price per Share	Rs. 18.00
Total Value of Shares	Rs. 34.65 crores
Warrants Acquired	3,57,50,000
Price per Warrant	Rs. 18.00
Total Value of Warrants	Rs. 64.35 crores
Warrant Conversion Period	Within 18 months from allotment date

Stake Distribution

Type	Percentage
Equity Shares	13.57%
Warrants (Convertible)	25.34%
Total Stake	39.30%

The transaction was completed on November 1, 2025, marking a significant change in SAL Steel's ownership structure. Following this acquisition and the completion of an open offer, Sree Metaliks is set to be classified as a promoter of SAL Steel.

Implications

Change in Promoter Status: The existing promoters of SAL Steel will cease to hold promoter status following this transaction.
Strategic Position: Sree Metaliks' substantial stake positions it as a key player in SAL Steel's future decisions and operations.
Potential for Further Integration: The acquisition may lead to synergies between the two companies in the steel sector.

This move by Sree Metaliks demonstrates the ongoing consolidation and strategic realignments within the Indian steel industry. The transaction's structure, involving both immediate equity and future convertible warrants, provides Sree Metaliks with a significant influence in SAL Steel while offering flexibility in its investment approach.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.00%	+6.02%	+34.82%	+108.05%	+49.43%	+1,411.54%

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.