Steel Exchange India has received comprehensive credit rating upgrades from Infomerics Valuation and Rating Limited, as communicated to stock exchanges on December 31, 2025. The company informed BSE and NSE about the enhanced ratings across multiple financial instruments and facilities, marking a significant improvement in its credit profile.

Rating Upgrades and Assignments

Infomerics Valuation and Rating Limited has assigned and upgraded ratings across various financial instruments totaling ₹398.56 crores. The rating actions demonstrate improved creditworthiness across the company's debt portfolio:

Significant Rating Improvements

The most notable upgrade involves the Non-Convertible Debentures worth ₹198.56 crores, which moved from CARE BB+/Stable to IVR BBB-/Stable. This represents a substantial improvement in credit quality assessment. The company's Long Term Bank Facilities for Cash Credit also received an upgrade from IVR BB+/Stable to IVR BBB-/Stable.

The Short Term Bank Facilities for Bank Guarantee worth ₹40.00 crores were upgraded from IVR A4+ to IVR A3, indicating improved short-term creditworthiness and liquidity position.

Rating Significance and Impact

The IVR BBB-/Stable rating assigned to long-term instruments indicates adequate credit quality with stable outlook. This rating suggests that Steel Exchange India maintains satisfactory capacity to meet its financial commitments across its ₹358.56 crores of long-term facilities.

The comprehensive rating upgrades reflect the company's improved financial profile and enhanced ability to service its debt obligations. These improved ratings are expected to positively impact the company's borrowing costs and provide better access to capital markets for future financing requirements.

Steel Exchange India has achieved a significant milestone by securing investment-grade credit rating status from Infomerics Valuation and Rating Limited, while its board of directors approved a comprehensive fundraising proposal to raise up to ₹700.00 crores. The dual announcement represents a strategic breakthrough that strengthens the company's financial position and supports future growth initiatives in the competitive steel manufacturing sector.

Credit Rating Upgrade Achievement

Infomerics Valuation and Rating Limited has assigned and upgraded loan facilities aggregating ₹398.56 crores, marking the company's entry into investment-grade status. The rating agency upgraded the company's facilities to IVR BBB-/Stable outlook, reflecting improved operational performance and enhanced financial discipline.

Fundraising Structure and Implementation

The board 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.

Strategic Growth Initiatives

The proposed fund raise will support the company's growth and expansion plans, including entry into specialty and value-added steel products under the Production Linked Incentive (PLI) Scheme, aligning with the Government of India's Atmanirbhar Bharat initiative. The investment-grade rating achievement will enable access to capital at competitive rates and provide enhanced financial flexibility for future operations.

Management Outlook and Regulatory Framework

The board has established a Fund-Raising Committee with comprehensive delegated authority to oversee fundraising execution, ensuring efficient decision-making once all necessary approvals are obtained. The fundraising initiative will be executed in strict accordance with the Companies Act, 2013, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable laws, remaining contingent upon securing requisite approvals from shareholders, regulatory authorities, and statutory bodies.