Shah Alloys Limited has announced that its Board of Directors approved a One Time Settlement (OTS) with HDFC Bank for Rs 18 crore on January 27, 2026. The decision was made during a board meeting held from 4:30 PM to 6:45 PM IST and was disclosed under Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Settlement Details

The One Time Settlement resolves a prolonged legal dispute between the company and HDFC Bank. According to the sanction letter dated January 27, 2026, Shah Alloys Limited has agreed to pay the following amount:

Background of Legal Dispute

The matter has been subject to extensive legal proceedings across multiple forums. The dispute timeline includes:

• Post-BIFR Court Order: The matter was initially handled following an order from the Hon'ble Board for Industrial and Financial Reconstruction (BIFR) Court
• DRT Proceedings: The case has been pending before the Debt Recovery Tribunal since 2019
• NCLT Reference: The matter was also referred to the National Company Law Tribunal
• Resolution: After a long legal battle, both the company and bank agreed to the full and final One Time Settlement

Regulatory Compliance

The company has fulfilled its disclosure obligations by providing detailed parameters of the One Time Settlement as required under Point No. 10 of Para A of the SEBI Circular dated July 13, 2023. The disclosure includes both the reason for opting for OTS and a brief summary of the settlement terms.

The settlement represents a significant development for Shah Alloys Limited, bringing closure to legal proceedings that have been ongoing since 2019 and providing the company with a clear path forward regarding its obligations to HDFC Bank.

Shah Alloys Limited has completed the transfer of equity shares in SAL Steel Limited to Sree Metaliks Limited as part of the Share Purchase Agreement executed on September 4, 2025. The company made the disclosure to stock exchanges on December 26, 2025, in compliance with SEBI regulations.

Share Transfer Details

The company has transferred a portion of its holdings in SAL Steel Limited to Sree Metaliks Limited under the terms of the previously announced Share Purchase Agreement. The transfer represents a significant step in the comprehensive divestment plan.

Share Purchase Agreement Structure

The Share Purchase Agreement involves multiple parties working together for the strategic restructuring of shareholding in SAL Steel Limited.

Regulatory Compliance

Shah Alloys Limited has ensured full compliance with applicable securities regulations for this transaction. The company has made necessary disclosures under multiple regulatory frameworks to maintain transparency.

Strategic Implications

This transfer represents the first phase of the comprehensive divestment plan outlined in the original Share Purchase Agreement. The transaction demonstrates Shah Alloys' commitment to executing its strategic restructuring while maintaining full regulatory compliance and transparency in corporate actions.