KIC Metaliks Limited , a prominent player in the Indian steel industry, has announced its intention to seek shareholder approval for material related party transactions worth up to Rs 500 crores with Bengal Energy Limited (BEL) for the financial year 2025-26. This move comes in the wake of a corporate restructuring that has established a new relationship between the two companies.

Corporate Restructuring and New Relationships

The need for this approval stems from a recent corporate restructuring approved by the National Company Law Tribunal (NCLT), Kolkata Bench. As per the order dated August 1, 2025, Thermic Steel Company Private Limited has become the holding company of both Karni Syntex Private Limited (Karni) and Bengal Energy Limited. Karni, in turn, is the holding company of KIC Metaliks, owning a 64.81% stake.

Nature of Proposed Transactions

The proposed transactions between KIC Metaliks and Bengal Energy Limited include:

1. Sale and purchase of raw materials such as coal, coke, and sinter
2. Trading of steel scrap
3. Procurement of iron ore pellets
4. Availing various auxiliary services for business purposes

These transactions are aimed at leveraging operational synergies and optimizing resource utilization between the two companies.

Financial Implications and Justification

The aggregate value of the proposed transactions for FY 2025-26 is set at Rs 500 crores, excluding all applicable taxes. This amount represents approximately 69.71% of KIC Metaliks' annual consolidated turnover for the preceding financial year, making it a material related party transaction under SEBI regulations.

KIC Metaliks has justified these transactions citing several benefits:

• Seamless supply chain integration
• Cost optimization due to geographical proximity
• Improved logistics and procurement efficiencies
• Enhanced market competitiveness
• Maintenance of stable production and supply chain processes

Corporate Governance and Approval Process

In line with regulatory requirements, the Audit Committee of KIC Metaliks reviewed and approved the proposed transactions on November 14, 2025, subject to shareholder approval. The company has emphasized that these transactions will be conducted at arm's length and in the ordinary course of business.

Voting Process

KIC Metaliks has initiated a postal ballot process for seeking shareholder approval. Key dates for the e-voting process are as follows:

Conclusion

As KIC Metaliks seeks to strengthen its operational efficiencies through these related party transactions, the outcome of the shareholder vote will be crucial in determining the company's strategic direction for the upcoming financial year. The results are expected to be announced by December 24, 2025.

KIC Metaliks Limited , a key player in the Indian metals sector, has announced its unaudited financial results for the quarter and half-year ended September 30, 2025, revealing a mixed performance and initiating a significant corporate action.

Financial Performance

The company reported a turnaround in its quarterly performance:

All figures in ₹ lakhs

KIC Metaliks has shown improvement in its quarterly performance, posting a profit of ₹8.08 lakhs for Q2 FY2026. This marks a significant turnaround from the loss of ₹35.49 lakhs reported in the previous quarter. However, the half-year results indicate ongoing challenges, with a cumulative loss of ₹107.38 lakhs for H1 FY2026.

Corporate Actions

In a notable development, the Board of Directors has approved a postal ballot notice seeking shareholder approval for material related party transactions with Bengal Energy Limited. This move underscores the company's commitment to transparency and compliance with regulatory requirements.

Board Meeting Details

The company's Board of Directors convened on November 14, 2025, to discuss and approve these matters. Key points from the meeting include:

1. Approval of unaudited financial results for Q2 and H1 FY2026
2. Review of the Limited Review Report by M/s. Agarwal Maheswari & Co., the company's statutory auditors
3. Approval of the postal ballot notice for related party transactions

The board meeting, which commenced at 4:45 PM, concluded at 6:10 PM.

Investor Implications

While the quarterly profit is a positive sign, investors may want to closely monitor the company's performance in the coming quarters to assess if this improvement is sustainable. The half-yearly loss suggests that challenges persist, and the company may need to implement strategic measures to achieve consistent profitability.

The proposed related party transactions with Bengal Energy Limited warrant attention from shareholders. Investors should carefully review the details of these transactions once the postal ballot notice is made available, as they could have significant implications for the company's operations and financial position.

KIC Metaliks Limited continues to navigate a complex business environment, balancing financial recovery efforts with strategic corporate actions. As the company moves forward, stakeholders will be keenly watching for signs of sustained improvement and the outcome of the upcoming shareholder vote on related party transactions.