Steel Exchange India Board Approves ₹700 Crore Fundraising Initiative
Steel Exchange India has received board approval for a significant ₹700 crore fundraising initiative through multiple financial instruments including equity shares, convertible securities, and debt instruments. The company has established a Fund-Raising Committee with delegated authority for execution while ensuring compliance with Companies Act 2013 and SEBI regulations, subject to shareholder and regulatory approvals.
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Steel Exchange India has announced that its board of directors approved a comprehensive fundraising proposal on December 30, 2025, authorizing the company to raise up to ₹700.00 crores through multiple financial instruments. The board meeting, which commenced at 11:00 a.m. and concluded at 12:20 p.m., represents a strategic initiative to strengthen the company's capital structure and support future growth plans.
Fundraising Structure and Implementation
The approved fundraising framework provides extensive flexibility in instrument selection and issuance methodology. The company can execute the capital raising through various modes including preferential issue, private placement, qualified institutions placement, public issue, or any other permissible method under applicable laws.
| Parameter: | Details |
|---|---|
| Maximum Amount: | ₹700.00 crores |
| Instrument Types: | Equity shares, equity-linked instruments, debt instruments |
| Specific Options: | Convertible equity warrants, convertible securities, non-convertible debentures |
| Issuance Structure: | One or more tranches |
| Security Types: | Secured or unsecured options available |
Governance and Delegation Framework
The board has established a Fund-Raising Committee with comprehensive delegated authority to oversee the fundraising execution. This committee will determine critical aspects including structure, form of issuance, specific instruments, pricing mechanisms, and terms and conditions of the issue.
| Committee Authority: | Scope |
|---|---|
| Structural Decisions: | Form and type of securities |
| Pricing Authority: | Price determination within legal limits |
| Documentation: | Filing applications and agreements |
| Regulatory Interface: | Making required regulatory filings |
| Implementation: | All incidental and ancillary matters |
Regulatory Compliance Framework
The fundraising initiative will be executed in strict accordance with multiple regulatory frameworks. The company has committed to compliance with the Companies Act, 2013, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable laws. The implementation remains contingent upon securing requisite approvals from shareholders, regulatory authorities, lenders, and statutory bodies.
| Compliance Aspect: | Requirements |
|---|---|
| Primary Legislation: | Companies Act, 2013 |
| SEBI Regulations: | ICDR Regulations, 2018 |
| Shareholder Approval: | Required for implementation |
| Regulatory Clearances: | Multiple authorities as applicable |
| Disclosure Compliance: | Regulation 30 of SEBI LODR |
Strategic Implications and Market Position
The substantial capital raising authorization demonstrates Steel Exchange India's commitment to business expansion and operational enhancement within the steel sector. The flexible structure allows the company to optimize its approach based on prevailing market conditions while maintaining compliance with regulatory requirements. The formal delegation to a specialized committee ensures efficient decision-making and execution once all necessary approvals are obtained, positioning the company for strategic growth initiatives in the competitive steel industry.
Historical Stock Returns for Steel Exchange India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.45% | +2.02% | +8.85% | -5.33% | -6.53% | +121.99% |
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