Steel Exchange India Limited (SEIL) has officially completed the refinancing and takeover of its existing loans and Non-Convertible Debentures (NCDs) amounting to Rs 350 crores at significantly reduced interest rates, marking a major financial milestone for the company. This announcement was made through an official filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, dated October 8, 2025, to both BSE Limited and National Stock Exchange of India Limited (NSE).

The successful completion of this refinancing initiative reflects the company’s strong financial discipline, strategic foresight, and continued focus on long-term value creation for its shareholders and stakeholders.

Background of the Refinancing

The company informed that it has secured a refinancing facility of Rs 350 crores from Kotak Mahindra Investments Limited, Oxyzo Financial Services Limited, and Kotak Credit Opportunities Fund. The purpose of this refinance is to prepay or takeover existing NCDs and term loans aggregating to Rs 340 crores, which were previously availed from Neo Asset Management Private Limited, True North Credit Opportunities Fund I, Neo Special Credit Opportunities Fund, Capri Global Capital Limited, and others.

This strategic refinancing marks a key step in the company’s ongoing efforts to optimise its capital structure, reduce borrowing costs, and enhance liquidity for future growth.

The company’s earlier communication on October 1, 2025, had indicated its intent to refinance high-cost borrowings with more favourable terms, which has now been successfully executed.

Disbursement and Utilisation Details

Out of the total sanctioned refinance facilities of Rs 350 crores, Rs 150 crores were disbursed on September 30, 2025, and were used to partly prepay the existing high-cost debts and NCDs on the same day as per the company’s utilisation plan.

The remaining Rs 199.17 crores were disbursed on October 7, 2025, by Kotak Credit Opportunities Fund and were utilised for the acquisition of listed NCDs of the company from existing holders Neo Special Credit Opportunities Fund and True North Credit Opportunities Fund I.

This structured and phased disbursement showcases SEIL’s prudent financial planning and ensures smooth debt transition without disrupting ongoing operations.

Significant Reduction in Interest Rates

A major highlight of this refinancing is the reduction of interest rates by approximately 5.50 percent compared to the earlier borrowing cost of 18.75 percent per annum.

This considerable reduction will result in substantial savings in finance costs, leading to improved margins and profitability in the coming years. The company has estimated that the revised terms will reduce cash outflows by nearly Rs 130 crores till FY 2028, primarily due to lower interest costs and an extended repayment tenure.

This financial restructuring strengthens SEIL’s ability to generate higher free cash flows and enhances its capability to invest in future projects and operational improvements.

Extended Repayment Tenure till September 2030

As part of the revised arrangement, SEIL’s repayment tenure has been extended to five years from the date of sanction, i.e., up to September 2030.

This extended repayment period offers the company greater financial flexibility and ensures a smoother debt servicing schedule, reducing short-term pressure on cash flows. It aligns repayment obligations with projected operational earnings, helping maintain liquidity even during cyclical downturns in the steel industry.

Such an approach reflects SEIL’s long-term strategic outlook and focus on maintaining a balanced capital structure.

Strategic Benefits and Impact

This refinancing is more than just a financial transaction; it is a strategic decision that aligns with SEIL’s long-term objectives of maintaining sustainable growth and operational stability.

The initiative brings several key advantages:

• Reduced cost of borrowing, which improves profitability.

• Enhanced liquidity position, enabling better working capital management.

• Improved credit profile, attracting potential investors and lenders.

• Extended repayment tenure, offering long-term stability.

These collective benefits strengthen SEIL’s position within the steel industry and reflect its capacity to effectively manage market fluctuations and financing challenges.

Strong Financial Management and Institutional Trust

The participation of reputed financial institutions such as Kotak Mahindra Investments, Oxyzo Financial Services, and Kotak Credit Opportunities Fund underscores the trust and confidence of leading financial players in SEIL’s creditworthiness.

It also highlights the company’s ability to negotiate favourable terms, which further enhances its financial sustainability. Such partnerships reaffirm SEIL’s standing as a reliable and disciplined borrower with sound financial governance practices.

Positive Impact for Shareholders and Stakeholders

For shareholders, this refinancing represents a direct enhancement of value, as the reduction in finance costs will positively impact profitability, earnings per share, and overall valuation.

For stakeholders, it demonstrates SEIL’s commitment to responsible financial management and long-term growth orientation. The company’s improved liquidity and financial flexibility will support future expansion, technological upgrades, and operational excellence.

Commitment to Transparency and Compliance

Steel Exchange India Limited remains committed to maintaining full transparency with its investors, regulators, and stakeholders.

The company continues to adhere to SEBI’s disclosure standards, ensuring that all material developments are shared promptly. This consistent approach towards transparency strengthens corporate governance and reinforces investor confidence in the management.

Industry Outlook and Relevance

The Indian steel industry continues to experience strong demand driven by infrastructure development, government projects, and private investments.

In this environment, financial agility is crucial. SEIL’s timely decision to refinance high-cost debt at significantly lower rates positions it favourably among its peers. The company’s integrated steel operations at Sreerampuram, L. Kota Mandal, Vizianagaram District, provide a strong operational backbone that complements its improved financial structure.

This move demonstrates how well-managed mid-sized steel producers can leverage financial strategies to remain competitive and resilient.

About Steel Exchange India Limited

Steel Exchange India Limited operates a fully integrated steel plant in Vizianagaram District, Andhra Pradesh, covering sponge iron, billets, and rolling mill operations.

The company has consistently focused on efficiency, sustainability, and innovation, establishing itself as a leading name in the Indian steel sector. With a commitment to prudent financial management, SEIL continues to pursue its mission of delivering high-quality steel products while ensuring financial stability and long-term value creation.

Conclusion

The completion of the Rs 350 crore refinancing at significantly reduced interest rates marks a transformational step for Steel Exchange India Limited.

It highlights the company’s strategic financial acumen, strong lender confidence, and robust credit profile. The initiative not only reduces costs but also strengthens liquidity, improves cash flows, and supports sustainable growth.

With this move, SEIL reaffirms its position as a financially disciplined and forward-looking organisation, well-equipped to meet future challenges and deliver enhanced value to shareholders and stakeholders alike.

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