Steel Exchange India Secures Major Refinancing Deal, Slashing Debt and Boosting Cash Flow

Steel Exchange India's refinancing deal slashes debt and boosts cash flow. The company's Joint Managing Director expresses optimism about the move.

, and Administrator

2025 October 18 . 10:07 AM

1 min read

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Steel Exchange India Secures Major Refinancing Deal, Slashing Debt and Boosting Cash Flow

Steel Exchange India, a prominent South Indian steel manufacturer, has secured a significant refinancing deal. On October 10, Kotak Credit Opportunities Fund will acquire the outstanding principal of ₹199 crore of listed non-convertible debentures (NCDs). The company has also prepaid ₹139 crore of existing debts, aiming to ease its interest burden and boost cash flows.

The revised financing arrangement has brought substantial benefits for Steel Exchange India. The company's borrowing cost has been lowered, and the repayment tenure extended, resulting in an additional cash flow of about ₹130 crore until FY28. Suresh Kumar Bandi, the Joint Managing Director, expressed optimism about the refinancing, stating it will support the company's growth.

The refinancing process involved ₹150 crore being disbursed to prepay high-cost NCDs and term loans. This included pre-paying a term loan of ₹25 crore, pre-redemption of secured unlisted NCDs worth ₹84 crore, and partial redemption of secured listed NCDs worth ₹32 crore. The company has also secured refinancing sanctions of ₹350 crore from a consortium of financial institutions.

The acquisition of the remaining ₹200 crore in outstanding NCDs on October 10, 2025, is subject to necessary approvals. While the buyer for this portion has not been publicly identified, the successful refinancing of ₹199 crore by Kotak Credit Opportunities Fund signals a positive step for Steel Exchange India's financial health.