Steel Exchange India Ltd Completes refinancing facility of ₹350 crore

Steel Exchange India Limited (NSE: STEELXIND, BSE: 534748), one of the leading integrated steel manufacturers in the private sector in South India and a trusted name in TMT rebars under the brand 'SIMHADRI TMT', has announced a significant progress in its financial management through prepayment/ redemption of Non-Convertible Debentures (NCDs) and a Term Loan by successfully securing refinancing at substantially reduced interest rates and favourable terms from Kotak Mahindra Investments Limited, Oxyzo Financial Services Limited and Kotak Credit Opportunities Fund, to prepay / takeover of its existing Non-Convertible Debentures (NCDs) and Term loan of Rs. 340 crores.

Out of the total sanctioned refinance facilities of Rs. 350 crores, the Company on 30th September 2025 drawn Rs 150 Cr Term Loans Kotak Mahindra Investments Limited, Oxyzo Financial Services Limited and successfully completed prepayment of Term Loan of Rs 25 Cr, full pre redemption of Secured unlisted NCDs of Rs 84.30 Cr and partial redemption of secured Listed NCDs amounting to Rs 32.35 Cr. thereby reducing the outstanding principal to ₹198.56 crore of Listed NCDs.

On 7th October, 2025 Kotak Credit Opportunities Fund disbursed Rs 199.17 Crores and acquired the Secured listed NCDs from the existing holders i.e Neo Special Credit Opportunities Fund & True North Credit Opportunities Fund I. With this the company has completed the prepayment/ replacement of all existing high cost long term debt with low-cost debt.

This strategic move reflects the company's strong credit profile and continued focus on prudent financial management.

The key highlights of the revised banking arrangement are as follows:

- Lower Interest Rate: The new NCDs facilities carry an interest rate reduction of approximately 5.50% compared to the previous borrowing cost of 18.75% per annum, resulting in substantial savings of finance costs.

- Improved Terms: In addition to the lower interest rate, the revised terms include extended repayment tenure of 5 years from the date of sanction i.e. up to September 2030. The same shall result in lower cash outflow of approximately Rs. 130 crores till FY 2028 due to lower interest rates & longer repayment tenure

- Strategic Impact: This refinancing initiative is part of the company's ongoing effort to optimize its capital structure, reduce borrowing costs, and improve liquidity, thereby enhancing shareholder value.

This combined initiative underscores Steel Exchange India Limited's commitment to proactive liability management, prudent financial planning, and sustained value creation.

Commenting on the development Mr. Suresh Kumar Bandi, Joint Managing Director, Steel Exchange India Limited said, "These steps reflect our continued focus on strengthening the Company's financial foundation. The sanctioned refinance facilities at 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."

Source : Equity Bulls

Keywords

SteelExchangeIndia RefinancingFacility NCDs