Steel Exchange India promoters encumber shares for debt refinancing

On September 30, 2025, Steel Exchange India Limited announced a disclosure regarding the creation of an encumbrance in the form of a non-disposal undertaking on equity shares held by the promoter and promoter group. This encumbrance covers 63,35,95,550 shares, representing 50.80% of the total share capital and 99.95% of the promoter's shareholding, in favor of VISTRA ITCL (INDIA) LIMITED (Security Trustee), Kotak Mahindra Investments Limited (Lender 1), and Oxyzo Financial Services Limited (Lender 2).

This action supports a new refinancing facility of ₹350 crores from Kotak Mahindra Investments Limited, Oxyzo Financial Services Limited, and Kotak Credit Opportunities Fund. The company intends to use these funds to prepay or take over existing non-convertible debentures (NCDs) and a term loan of ₹340 crores. This refinancing is expected to lower the interest rate by approximately 5.50% compared to the previous borrowing cost of 18.75% per annum, with an extended repayment tenure of five years until September 2030.

As of September 30, 2025, ₹150 crores of the sanctioned facility has been disbursed, allowing Steel Exchange India Limited to partly prepay existing high-cost debt. The remaining ₹200 crores is expected to be disbursed by October 10, 2025, to acquire NCDs from existing holders. The company also announced a partial redemption of NCDs, reducing the outstanding amount to ₹198,55,83,821.