Steel Exchange India Limited has successfully completed a comprehensive debt reduction initiative through a two-phase Non-Convertible Debenture (NCD) redemption totaling ₹41.66 crore on April 22, 2026. The transaction comprised both partial voluntary prepayment and scheduled partial redemption, demonstrating the company's continued commitment to strengthening its balance sheet and reducing financial leverage.

Two-Phase NCD Redemption Structure

The company executed the debt reduction through a structured approach involving two distinct components. The partial voluntary prepayment amounted to ₹39.65 crore, while the scheduled partial redemption contributed ₹3.55 crore to the total transaction value.

Debenture Details and Timeline

The redeemed NCDs carry the ISIN INE503B07044 with an original due date of October 6, 2030. The scheduled partial redemption was originally due on July 7, 2026, but was completed ahead of schedule on April 22, 2026. The last interest payment on these debentures was made on April 7, 2026, just prior to the redemption transaction.

Strategic Debt Management Progress

This latest redemption builds upon Steel Exchange India's ongoing deleveraging strategy, which has achieved substantial progress in recent periods. The company has successfully reduced its long-term debt by over 20% since October 2025, reflecting strong cash flow generation capabilities and disciplined capital allocation. The systematic approach to debt reduction provides greater visibility on lower finance costs and improved earnings quality going forward.

Company Operations and Market Position

Steel Exchange India Limited operates as part of the Vizag Profiles Group, manufacturing TMT rebars under the SIMHADRI TMT brand. The company runs an integrated steel plant and power unit in Vizianagaram District, featuring comprehensive backward and forward integration capabilities including sponge iron, billet, rolling mill, and power generation facilities. This integrated approach enables the company to maintain operational efficiency while supporting its debt reduction objectives through consistent cash flow generation.

Steel Exchange India Limited has successfully completed the allotment of 31,74,60,300 convertible equity warrants worth ₹300 crore to IMR Group entities on April 20, 2026. The company received ₹74,99,99,958.75 as the initial 25% subscription amount towards these warrants, which are convertible into equivalent equity shares within 18 months.

Warrant Allotment Details

The Board of Directors approved the allotment through a circular resolution on April 20, 2026, following shareholder approval at the Extra-Ordinary General Meeting held on March 30, 2026. The warrants were issued at ₹9.45 per warrant, including a premium of ₹8.45 each.

IMR Group Investment Distribution

The warrants were equally distributed between two IMR Group entities, each receiving 15,87,30,150 warrants. Both entities are classified as non-promoter investors in this preferential issue.

Regulatory Compliance and Approvals

The allotment was completed following comprehensive regulatory approvals, including in-principle approval from both NSE and BSE on April 17, 2026. The warrants are issued in electronic form and subject to lock-in provisions as per SEBI ICDR Regulations.

Strategic Partnership Impact

IMR Group, a leading international metals and mining conglomerate with presence in over 17 countries, brings significant expertise in steel industry value chain operations. The partnership provides Steel Exchange India access to global sourcing of key raw materials including metallurgical coke, coking coal, and ferrous scrap.

The warrant holders can exercise conversion rights at any time during the 18-month period in one or more tranches, upon payment of the remaining 75% amount. The company's paid-up equity share capital remains unchanged until warrant conversion occurs.

Company Profile

Steel Exchange India Limited, part of the Vizag Profiles Group, operates as an integrated steel manufacturer under the 'SIMHADRI TMT' brand. The company has manufacturing facilities in Vizianagaram District with sponge iron, billet, rolling mill, and power generation capacities.