Shah Alloys Limited , a prominent player in the steel industry, has announced significant changes to its corporate structure and leadership. The company's board of directors, in a meeting held on September 4, 2025, approved several key decisions that are set to reshape its business landscape.

Divestment of Stake in S.A.L Steel Limited

In a strategic move, Shah Alloys has decided to divest its entire equity shareholding in its associate company, S.A.L Steel Limited. The company will sell 3,02,56,989 equity shares, each with a face value of ₹10.00, to Sree Metaliks Limited. This transaction is part of a larger Share Purchase Agreement (SPA) dated September 4, 2025, which also involves SAL Care Private Limited as a seller.

The SPA outlines the following key points:

• Shah Alloys Limited (Seller-1) will sell 3,02,56,989 equity shares.
• SAL Care Private Limited (Seller-2) will sell 1,27,02,506 equity shares and 48,00,000 convertible warrants.
• Sree Metaliks Limited will be the acquirer of these shares.
• Upon completion of the transaction, Sree Metaliks will be classified as the new promoter of S.A.L Steel Limited.
• The existing promoters, including Shah Alloys, will be reclassified as public shareholders.

This divestment is subject to certain conditions precedent and necessary regulatory approvals.

Appointment of New Whole-Time Director

In another significant development, the board has appointed Shri Rajnikant Amrutlal Vyas as an Additional Director designated as Whole-time Director of the company. Key details of this appointment include:

• Effective Date: September 4, 2025
• Term: 5 years, subject to shareholder approval
• DIN: 11276226

Shri Vyas brings over 25 years of experience in sales, marketing, and operations management to Shah Alloys. His expertise includes analyzing upcoming business trends and launching business plans for new markets, which could prove valuable for the company's future growth strategies.

Annual General Meeting Announcement

The board has also approved the notice for the 35th Annual General Meeting (AGM) of the company. The AGM is scheduled to be held on September 26, 2025, at 11:00 AM (IST) through video conferencing (VC) or other audio-visual means (OAVM), in line with the relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India.

These developments mark a significant shift in Shah Alloys' corporate strategy, potentially impacting its market position and future growth trajectory. Shareholders and market watchers will be keenly observing how these changes unfold and affect the company's performance in the coming months.

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.