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.

Shah Alloys Ltd, a prominent player in the Indian steel industry, has announced significant changes in its board composition and reported financial results for the first quarter, amidst plans to shut down its iron and steel plant operations.

Board Appointment and Continuation

The company's board has appointed Smt Nipa Jairaj Shah as an Additional Non-Executive Independent Director for a five-year term, effective August 14, 2025, subject to shareholder approval at the upcoming Annual General Meeting (AGM). Smt Shah brings over five years of experience in social management activities, particularly in CSR and relationship management.

In a separate move, the board approved the continuation of Shri Ashok Sharma as Whole Time Director, despite his reaching 70 years of age. Sharma, who has been with the company since July 2001, boasts over 40 years of experience in senior finance and accounting positions.

Financial Performance

For the quarter ended June 30, 2025, Shah Alloys reported:

All figures in Rs crore

The company's revenue from operations saw a significant decline compared to the same quarter in the previous year, while the net loss narrowed.

Plant Closure and Future Plans

In a critical development, Shah Alloys announced the closure of its Iron and Steel plant located at Santej, Gujarat, by the end of August 2025. The decision comes in response to technological obsolescence and higher production costs, which have led to persistent losses in recent years.

The company's management stated that they are exploring various options in the best interest of Shah Alloys, emphasizing that the accounts have been prepared on a "going concern" basis despite the plant closure.

Auditor's Concerns

The company's auditors have expressed concerns about Shah Alloys' status as a going concern due to the plant closure. They also noted that the company has not made provisions for interest on bank loans, which would have increased the reported loss by Rs 36.55 lakhs for the quarter.

Annual General Meeting

The board has scheduled the 35th Annual General Meeting for September 26, 2025, where shareholders will have the opportunity to vote on these significant changes and financial results.

As Shah Alloys navigates through this challenging period of restructuring and plant closure, stakeholders will be keenly watching the company's next steps and its ability to return to profitability in the coming quarters.