Steelco Gujarat Limited Allots ₹160.00 Crore Non-Convertible Debentures to India Resurgence Fund Schemes

Steelco Gujarat Limited announced the successful completion of a significant debt fundraising initiative through the allotment of non-convertible debentures worth ₹160.00 crore. The company's board of directors, in a meeting held on January 1, 2026, approved the allotment of 16,000 senior, unrated, listed, secured, redeemable, partly paid-up non-convertible debentures to India Resurgence Fund schemes on a private placement basis.

Debenture Structure and Terms

The debentures carry attractive financial terms designed to provide substantial returns to investors. Each debenture has a face value of ₹1.00 lakh but is issued as partly paid-up securities with a value of ₹87,500.00 per debenture. This structure results in a total partly paid-up amount of ₹140.00 crore against the base issue size of ₹160.00 crore.

Investment Returns and Interest Structure

The debentures offer an attractive investor Internal Rate of Return (IRR) of 21.90% per annum, structured through a combination of variable interest rates and redemption premium. The variable interest component follows a progressive structure with rates of 6.00% per annum for the first year, 8.00% per annum for the second year, and 10.00% per annum thereafter until the final settlement date. Interest payments are scheduled quarterly, while the redemption premium is payable on each scheduled redemption date as per the redemption schedule.

Allottees and Market Listing

The debentures have been allotted to two schemes of India Resurgence Fund: India Resurgence Fund 2 – Scheme 2 and India Resurgence Fund 2 – Scheme 4. The company plans to list these securities on the Wholesale Debt Market segment of BSE Limited, providing liquidity options for the debenture holders.

Comprehensive Security Framework

The debentures are backed by extensive security arrangements to protect investor interests. The security package includes:

• First ranking mortgage and exclusive mortgage on various mortgaged properties
• First ranking hypothecation and exclusive hypothecation on hypothecated properties
• First ranking pledges on issuer, Urjah, and Goddard pledge securities
• Personal guarantees from designated guarantors
• Corporate guarantees from multiple entities including Goddard, Teras, Sanish, Eesan, Sainaisha, Ultimate, and Urjah
• Demand promissory notes, letters of continuity, and undated cheques

Default Protection and Risk Mitigation

The debenture terms include robust default protection mechanisms. In case of payment delays exceeding three months or default in interest or principal payments, additional interest of 3.00% per annum will be levied over and above the coupon and redemption premium on all outstanding dues. The redemption structure ensures that debenture holders receive yields equivalent to the investor IRR calculated from the deemed allotment date until redemption.

This successful debenture allotment represents a significant milestone in Steelco Gujarat Limited's capital raising efforts, providing the company with substantial long-term funding while offering investors attractive returns backed by comprehensive security arrangements. The board meeting concluded at 11:15 AM on January 1, 2026, with Managing Director Anoop Kumar Saxena overseeing the proceedings.