Steel Exchange India Limited (SEIL) has announced two significant financial developments that are set to impact its operations and shareholding structure.

Refinancing of Existing Loans and NCDs

SEIL has successfully secured sanctions for a Rs 350.00 crore refinancing facility on more favorable terms from Kotak Mahindra Investments Limited, Oxyzo Financial Services Limited, and Kotak Credit Opportunities Fund. This new facility will be used to prepay and take over existing Non-Convertible Debentures (NCDs) and a term loan totaling Rs 340.00 crore from various lenders including Neo Asset Management Private Limited and True North Credit Opportunities Fund.

Key highlights of the refinancing include:

• Interest Rate Reduction: The new NCDs come with an interest rate approximately 5.50% lower than the previous borrowing cost of 18.75% per annum, promising substantial savings in finance costs.
• Extended Repayment Tenure: The revised terms include a 5-year repayment period until September 2030, resulting in lower cash outflows of approximately Rs 130.00 crore until FY 2028.
• Partial Disbursement: Out of the total sanctioned amount, Rs 150.00 crore has already been disbursed, with the remaining Rs 200.00 crore expected to be disbursed shortly, subject to approvals and formalities.

Non-Disposal Undertaking on Promoter Shareholding

In a separate development, SEIL's promoters and promoter group have created a non-disposal undertaking on 63,35,95,550 equity shares, representing 50.80% of the company's total share capital. This undertaking was created in favor of VISTRA ITCL (INDIA) LIMITED as the security trustee, along with lenders Kotak Mahindra Investments Limited and Oxyzo Financial Services Limited.

Key points of the non-disposal undertaking include:

• The encumbered shares represent 99.95% of the total promoter shareholding.
• 16 individual promoters and promoter group entities are involved in this undertaking.
• The restriction prevents promoters from diluting their stake without prior written approval from lenders, except for permitted equity events and outstanding warrants.
• This undertaking is part of a facility agreement where the company will utilize Rs 150.00 crore primarily for repaying existing debt.

Financial Transactions and Compliance

SEIL has also reported the following financial transactions:

• Payment of scheduled and voluntary redemption to holders of Secured Non-Convertible Debentures.
• Payment of interest amounting to Rs 3,55,85,527 to NCD holders.
• Partial redemption of NCDs, reducing the face value from Rs 603,215 to Rs 518,700 per NCD.

Additionally, the company has announced the closure of the trading window for designated persons until 48 hours after the declaration of unaudited financial results for the quarter and half-year ended September 30.

These developments demonstrate Steel Exchange India's efforts to optimize its capital structure, reduce borrowing costs, and improve liquidity. The company remains committed to maintaining transparency with its investors and will continue to inform stakeholders of any material developments.

Steel Exchange India Limited, a prominent player in the steel industry, has announced a significant expansion of its business portfolio. The company's board of directors has approved amendments to its Memorandum of Association (MOA), broadening its operational scope to include real estate, infrastructure, and logistics sectors.

Expansion into New Sectors

The board's decision, made during a meeting on September 3, 2025, involves the addition of two new sub-clauses to the Main Object Clause (Clause III(A)) of the company's MOA. These additions will allow Steel Exchange India to diversify its business activities beyond its current focus on steel production.

Real Estate and Infrastructure

The first new sub-clause (Sub-clause 11) enables the company to engage in real estate development and infrastructure construction. This expansion includes:

• Contracting, building, and engineering services
• Town planning and land development
• Property dealing in India and abroad
• Construction and management of residential, commercial, and industrial properties
• Development of public infrastructure such as roads, highways, railways, and utility works

Logistics and Transportation

The second addition (Sub-clause 12) focuses on integrated logistics and multimodal transportation operations. Key aspects of this expansion include:

• Material management and warehousing
• Storage and protection of goods
• Distribution services
• Establishment and operation of railway terminals and cargo facilities
• Provision of transportation solutions across various modes (land, air, water, space)
• Participation in the Gati Shakti Multimodal Cargo Terminal framework

Shareholder Approval and Next Steps

While the board has approved these changes, they are subject to shareholder approval at the upcoming Annual General Meeting. The company has also authorized key managerial personnel to determine the materiality of events or information for disclosure purposes, in line with SEBI regulations.

Implications for Steel Exchange India

This strategic move positions Steel Exchange India to diversify its revenue streams and potentially capitalize on growth opportunities in the real estate, infrastructure, and logistics sectors. By leveraging its existing strengths in the steel industry, the company aims to create synergies across these new business verticals.

The expansion into these sectors could provide Steel Exchange India with a more robust business model, potentially reducing its dependence on the cyclical steel industry. However, the success of this diversification will depend on the company's ability to effectively manage and grow these new business lines alongside its core steel operations.

As Steel Exchange India embarks on this new chapter, stakeholders will be watching closely to see how the company navigates the challenges and opportunities presented by these diverse sectors.