Steel Exchange India secures ₹350 crore refinancing, slashes finance costs

Steel Exchange India Limited (SEIL) has secured ₹350 crore in refinancing facilities, as of September 30, 2025, from a consortium of financial institutions including Kotak Mahindra Investments Limited and Kotak Credit Opportunities Fund. This move aims to reduce finance costs, with ₹150 crore already disbursed for prepayment of high-cost NCDs and term loans. The remaining ₹200 crore is expected by October 10, 2025, to acquire outstanding NCDs.

The refinancing includes the prepayment of a term loan of ₹25 crore, full pre-redemption of secured unlisted NCDs of ₹84.30 crore, and partial redemption of secured listed NCDs amounting to ₹32.35 crore. These actions reduce the outstanding principal of listed NCDs to ₹198.56 crore. The new arrangement lowers the interest rate by approximately 5.50% from the previous ~18.75% per annum and extends the repayment tenure to five years, up to September 2030, generating an estimated cumulative additional cashflow of ₹130 crore until FY2028.

According to Suresh Kumar Bandi, joint managing director, this financial management strategy aims to strengthen the company’s foundation, ease interest burdens, improve cash flows, and provide flexibility for growth, aligning with SEIL's commitment to proactive liability management and sustained value creation.