Steel Exchange India Shares Rise Near 2% on ₹350 Crore Refinancing

Visakhapatnam, October 9, 2025: Steel Exchange India Limited (NSE: STEELXIND, BSE: 534748) shares rose nearly 2% on Thursday morning, following the company’s completion of a ₹350 crore refinancing facility on improved terms. The move, which includes lower interest rates, is expected to reduce finance costs and strengthen the company’s capital structure.

Refinancing Details

The refinancing replaces expensive maturing NCDs and term loans with lower-cost debt from Kotak Mahindra Investments Ltd, Oxyzo Financial Services Ltd, and Kotak Credit Opportunities Fund. The five-year facility, extending until September 2030, cuts borrowing costs by approximately 5.5%, potentially saving around ₹130 crore in interest through FY2028.

On 30 September 2025, the company raised ₹150 crore in term loans, which were used to repay ₹25 crore in term loans, prepay ₹84.3 crore of secured unlisted NCDs, and redeem a portion of ₹32.35 crore in secured listed NCDs. The refinancing concluded on 7 October 2025, with the outstanding listed NCDs acquired by Kotak Credit Opportunities Fund.

During FY25, SEIL recorded a total revenue of ₹1,163.37 crore, EBITDA of ₹143.60 crore, and net profit of ₹25.93 crore. SEIL aims to expand in specialty steels under the PLI program to enhance its value-added products as well as import substitution in line with India’s Atmanirbhar Bharat policy.

Management Commentary

Suresh Kumar Bandi, Joint Managing Director, said: “These steps reflect our continued focus on strengthening the company’s financial foundation. The sanctioned refinance facilities at a lower cost for repayment of existing high-cost debt will 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.”

Market Response

As of 12:58 p.m. IST on 9 October, the stock was trading at ₹10.57, up ₹0.08 or 0.76% from the previous close of ₹10.49. The stock hit an intraday high of ₹10.76 and a low of ₹10.54, with 22.57 lakh shares changing hands. The company’s market capitalisation stood at ₹1,333.28 crore.

REF: https://nsearchives.nseindia.com/corporate/STEELXIND_09102025110832_Intimation_of_Press_Release_09102025_Final.pdf

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