Visakhapatnam (Andhra Pradesh) [India], October 3: Steel Exchange India Limited (NSE: STEELXIND, BSE: 534748),one of the leading integrated steel manufacturers in the private sector in South India and a trusted namein TMT rebars under thebrand ‘SIMHADRI TMT’, has announced a significant progress in its financialmanagement through prepayment/ redemption of Non-Convertible Debentures (NCDs) and a Term Loanby successfully securing refinancingat substantially reduced interest rates.
On30th September 2025,the Company has secured sanctionsof₹350 crore of refinancing facilitiesfrom a consortium of leading financial institutions including Kotak Mahindra Investments Limited, Oxyzo Financial Services Limited and Kotak Credit Opportunities Fund. Of this,₹150 crore has already been disbursed and applied towards prepayment of existing high-cost NCDs and Term loan, the balance₹200 crore to be disbursed on or before 10th October 2025to acquire outstanding NCDs from existing holders, subject to requisite approvals.
With the above refinance facilities,the Companyon 30thSeptember 2025 successfullycompletedprepayment of Term Loan of Rs 25Cr,fullpreredemption of SecuredunlistedNCDsof Rs 84.30 Crandpartial redemption of secured Listed NCDs amounting to Rs 32.35 Crtherebyreducing the outstanding principal to₹198.56 croreof Listed NCDswhich will be acquired byKotak Credit Opportunities Fundon or before 10thOctober ,2025and change the terms as per new facility.The Company also discharged the due interest payment on the same date.
The revised financing arrangement provides the following benefits:
•Lower Interest Rate:Reduction of approximately5.50%compared to the earlier borrowing cost of ~18.75% per annum, resulting in substantial savings.
•Improved Terms:Extended repayment tenure offive yearsfrom sanction, up toSeptember 2030, expected to generate cumulativeadditional cashflowof approximately₹130 crore till FY2028.
•Strategic Impact:Optimization of the capital structure, enhanced liquidity position, and improved shareholder value through reduced finance costs.
This combined initiative underscores Steel Exchange India’s commitment to proactive liability management, prudent financial planning, and sustained value creation.
Commenting on thedevelopmentMr. SureshKumarBandi,Joint ManagingDirector,Steel Exchange India Limitedsaid,“These steps reflect our continued focus on strengthening the Company’s financial foundation.Thesanctioned refinance facilities at lower cost for repaymentofexistinghigh-costdebtwill ease our interest burden, improve cash flows, and provide us the flexibility to support growth. This proactive financial management positions us well to pursue our long-term business objectives with greater confidence.”
If you have any objection to this press release content, kindly contact [emailprotected] to notify us. We will respond and rectify the situation in the next 24 hours.
