Steel Exchange India Sees ₹171.60 Cr Pledge Release

Catalyst Trusteeship Limited has announced the release of pledged equity shares of Steel Exchange India Ltd, marking a significant corporate development for the steel sector company. The release was executed in the capacity of Debenture Trustee on behalf of debenture holders, as disclosed under SEBI regulations.

Share Release Details

The transaction involved the release of a substantial equity stake that was previously encumbered. The key parameters of this share release demonstrate the scale and impact of this corporate action.

Parameter	Details
Shares Released	17,16,00,000 equity shares
Percentage of Total Capital	13.76%
Percentage of Diluted Capital	13.45%
Value of Released Shares	₹171.60 crores
Mode of Release	Release of pledge of equity shares

Capital Structure Impact

The release has resulted in a complete elimination of encumbered shares for Steel Exchange India Ltd. Prior to this transaction, the company had significant pledged shareholding that has now been fully released.

Before and After Comparison

Metric	Before Release	After Release
Pledged Shares	17,16,00,000	Nil
Encumbrance Percentage	13.76%	0.00%
Voting Rights Impact	13.45% encumbered	Fully released

Company Capital Structure

Steel Exchange India Ltd maintains a stable capital structure following this transaction. The company's fundamental capital metrics remain unchanged, with only the encumbrance status being modified.

Capital Component	Amount
Equity Share Capital	₹1,24,72,20,542
Number of Equity Shares	1,24,72,20,542
Face Value per Share	₹1.00
Total Diluted Capital	₹1,27,55,18,412

Regulatory Compliance

The disclosure was made pursuant to Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Catalyst Trusteeship Limited, with registered office in Pune, executed this transaction as part of its fiduciary responsibilities toward debenture holders. The company's shares are listed on both BSE Limited and National Stock Exchange of India Limited, ensuring transparency and regulatory compliance in this corporate action.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.33%	-2.91%	+4.29%	-10.00%	-12.45%	+70.13%

Steel Exchange India Limited (SEIL) has released its financial results for the quarter ended September 30, showcasing a mixed performance with improved profitability despite a decline in revenue.

Key Financial Highlights

SEIL reported the following key figures for Q2:

Metric	Q2 Value (Rs lakhs)	Previous Quarter (Rs lakhs)
Net Profit	1,022.88	272.48
Revenue	28,176.30	29,999.89

Revenue and Profitability Analysis

The company experienced a quarter-on-quarter decline in revenue, dropping from Rs 29,999.89 lakhs to Rs 28,176.30 lakhs. Despite this decrease, SEIL managed to significantly improve its net profit, which rose from Rs 272.48 lakhs in the previous quarter to Rs 1,022.88 lakhs in the current quarter.

Corporate Actions

During the quarter, SEIL undertook several significant corporate actions:

New term loans: Secured Rs 1,500 crores in term loans from Kotak Mahindra Investment Ltd. and Oxyzo Financial Services Ltd. at a 12% interest rate.
Debt repayment: Used the proceeds from the new loans to prepay high-cost debt and repay Rs 843 crores of outstanding Non-Convertible Debentures (NCDs).

These actions suggest that Steel Exchange India is actively managing its capital structure and improving its financial position by refinancing high-cost debt with more favorable terms.

Conclusion

While the company faces challenges in terms of revenue growth, the significant improvement in net profit demonstrates SEIL's ability to enhance operational efficiency and financial performance. The management's focus on debt restructuring indicates a proactive approach to strengthening the company's financial position.