S.A.L. Steel Surges 19.97% Today as Sree Metaliks Announces ₹94.09 Crore Open Offer

Ahmedabad, September 5, 2025 – Shares of S.A.L. Steel Ltd (NSE: SALSTEEL, BSE: 532604) surged in double digits, increasing by 19.97%. The rally in the shares came after Sree Metaliks Ltd, the acquirer of the company, announced an open offer to acquire up to 3.76 crore shares representing 26% of the company’s expanded equity capital.

Market Reaction

As of September 05, 205, shares of S.A.L. Steel Ltd opened in green at ₹22.17. As the shares hit the upper circuit limit at the price, they got locked at it, which is also the day’s high. with The company had a decent buy order at 20.54 lakhs with ₹2.37 lakhs in traded volume, ₹0.53 crore in traded value, and ₹188.37 crore in market capitalization.

Open Offer Details

As per the regulatory filing with the stock exchanges, the size of the offer is 3,76,39,342 equity shares (26% of expanded share capital). The offer is made at ₹25 per share, payable in cash. If the entire offer (public) is accepted, the total consideration for the offer will add up to ₹94.09 crore. The acquisition will be made through various modes, including a combination of share subscription, warrants, and share purchase agreements with promoters.

Promoter Exit and Control Shift

After the shares change hands, the current promoters, Shah Alloys Ltd (35.61% stake) and SAL Care Pvt Ltd (14.95%), will fully transfer their holdings to Sree Metaliks, the acquirer. This will reclassify the acquirer as a promoter and the current promoters as public investors. Further, depending on the response to the public offer, the holding of the acquirer, Sree Metaliks, can go up to 96.98%.

Why the Rally?

The acquirer has made a public offer for the shares of S.A.L. Steel Ltd at an offer price of ₹25. The price is at a 12.7% premium compared to today’s opening price of ₹22.17. The probability of earning the premium and the control shift, along with promoter exit, has driven the rally, making the shares one of the top 10 gainers today.

Investor Insight

While the changes and high premiums offer profitability present a great opportunity, investors should still keep a close eye on how the open offer subscription unfolds and whether the stock sustains momentum beyond the offer price.

REF: https://nsearchives.nseindia.com/corporate/SALSTEEL_04092025203929_Reg_30_-_Disclosure_of_Public_Announcement.pdf

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