Steel Exchange India secures ₹350 Cr refinancing, reducing interest costs and boosting future cash flows.
Steel Exchange India Limited (SEIL), which is a leading integrated steel manufacturer in South India known for its ‘SIMHADRI TMT’ brand (NSE: STEELXIND, BSE: 534748), has announced a major strategic step in its financial management.
The company successfully secured a ₹350 crore refinancing facility that is projected to lead to substantial savings in finance costs going forward.
This initiative reflects the company’s commitment to proactive liability management and prudent financial planning.
The primary goal of the refinancing is the prepayment and redemption of existing high-cost debts, specifically Non-Convertible Debentures (NCDs) and a Term Loan.
The sanctions for the ₹350 crore facility were secured on September 30, 2025, from a consortium of key financial institutions.
These institutions include Kotak Mahindra Investments Limited, Oxyzo Financial Services Limited, and Kotak Credit Opportunities Fund.
Advertisement
The most significant immediate benefit of this revised financing arrangement is the substantial reduction in the cost of borrowing.
The interest rate is reduced by approximately 5.50% compared to the company’s earlier borrowing cost, which was roughly 18.75% per annum. This reduction is expected to result in substantial cost savings moving forward.
Regarding the immediate utilization of the funds, ₹150 crore has already been disbursed and applied toward the prepayment of existing high-cost NCDs and Term Loan.
...
As of September 30, 2025, SEIL successfully completed the prepayment of a Term Loan of ₹25 Cr, the full pre-redemption of Secured unlisted NCDs of ₹84.30 Cr, and partial redemption of secured Listed NCDs amounting to ₹32.35 Cr.
Following these initial payments, the outstanding principal amount for the Listed NCDs stands at ₹198.56 crore.
The remaining ₹200 crore of the refinancing facility is scheduled for disbursement on or before October 10, 2025, which will be used to acquire these outstanding listed NCDs and change the terms in line with the new facility.
In addition to the lower interest rates, the company secured improved terms, including an extended repayment tenure of five years from the sanction date, stretching until September 2030.
This extension in tenure is expected to significantly benefit cash flow, projected to generate cumulative additional cashflow of approximately ₹130 crore until the end of the fiscal year 2028 (FY2028).
This combined effort is aimed at the optimization of the capital structure, enhancement of the company’s liquidity position, and improvement of shareholder value through reduced finance costs.
Mr. Suresh Kumar Bandi, Joint Managing Director of Steel Exchange India Limited, commented that these steps underscore the company’s focus on strengthening its financial foundation.
He stated that the lower-cost refinancing facilities for the repayment of existing high-cost debt will effectively ease the interest burden and improve cash flows. This provides the company with the necessary flexibility to support future growth.
Mr. Bandi concluded that this proactive financial management strategy positions SEIL well to pursue its long-term business objectives with greater confidence.
SEIL, which operates an Integrated Steel Plant & Power Unit near Visakhapatnam, reported a Total Income of ₹1,163.37 Cr and a Net Profit of ₹25.93 Cr for the fiscal year 2025.
Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.
अहमात्मा गुडाकेश सर्वभूताशयस्थितः। हे गुडाकेश! मैं सभी प्राणियों के हृदय में स्थित आत्मा हूँ। मैं उन्हें मार्गदर्शन और स्थिरता देता हूँ। I am the Self, O Gudakesha, seated in the hearts of all beings. I guide them and provide stability in life.
📆6th, October Celebrated as World Cerebral Palsy Day
