Team Startupcity

• Steel Exchange India secured Rs 350 crore refinancing to prepay high-cost NCDs and a Term Loan.
• Interest rate reduced by ~5.5% with extended repayment tenure until September 2030, generating ~Rs 130 crore additional cash flow.
• Optimized capital structure, enhanced liquidity, and improved shareholder value through proactive financial management.

Steel Exchange India Limited (NSE: STEELXIND, BSE: 534748), a leading private-sector steel manufacturer in South India and a trusted name in TMT rebars under the brand SIMHADRI TMT, has taken a major step to improve its financial health by prepaying Non-Convertible Debentures (NCDs) and a Term Loan through refinancing at significantly lower interest rates.

On September 30, 2025, the company secured Rs 350 crore in refinancing facilities from a consortium of leading financial institutions, including Kotak Mahindra Investments Limited, Oxyzo Financial Services Limited, and Kotak Credit Opportunities Fund. Of this, Rs 150 crore has already been disbursed and used to prepay existing high-cost NCDs and the Term Loan. The remaining Rs 200 crore is expected to be disbursed on or before October 10, 2025, to acquire outstanding NCDs from existing holders, subject to approvals.

Using these refinancing facilities, Steel Exchange India has successfully completed:

- Prepayment of Term Loan of Rs 25 crore

- Full pre-redemption of secured unlisted NCDs worth Rs 84.30 crore

- Partial redemption of secured listed NCDs amounting to Rs 32.35 crore

This reduces the outstanding listed NCD principal to Rs 198.56 crore, which will be acquired by Kotak Credit Opportunities Fund by October 10, 2025, under revised terms. The company also cleared the due interest payments on the same date.

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The new financing arrangement offers several benefits:

Lower Interest Rate: Reduction of about 5.50%, down from 18.75% per annum, generating significant savings.

Improved Terms: Extended repayment tenure of five years until September 2030, expected to create Rs 130 crore cumulative additional cash flow by FY2028.

Strategic Impact: Optimized capital structure, enhanced liquidity, and improved shareholder value through lower finance costs.

Commenting on the move, Suresh Kumar Bandi, Joint Managing Director, said, "These steps reflect our focus on strengthening the company’s financial foundation. The refinance facilities at lower cost reduce our interest burden, improve cash flows, and provide flexibility to support growth. This proactive management positions us well to achieve long-term business goals with confidence".

This initiative highlights Steel Exchange India’s commitment to prudent financial planning, proactive liability management, and sustained value creation for its shareholders.