By Our Bureau

Copyright thehindubusinessline

Steel Exchange India, a leading integrated steel manufacturer in South India, has refinanced its existing debt at a lower rate.

The company has secured sanctions of ₹350 crore of refinancing facilities from a consortium of leading financial institutions including Kotak Mahindra Investments, Oxyzo Financial Services and Kotak Credit Opportunities Fund.

Of this, ₹150 crore has already been disbursed and used to prepay existing high-cost NCDs and term loans. The balance ₹200 crore to be disbursed on or October 10 to acquire outstanding non-convertible debentures from existing holders, subject to requisite approvals.

With the fresh refinancing facilities, the company pre-paid term loan of ₹25 crore, pre-redemption of secured unlisted NCDs of ₹84 crore and partial redemption of secured listed NCDs worth ₹32 crore thereby reducing the outstanding principal to ₹199 crore of listed NCDs which will be acquired by Kotak Credit Opportunities Fund on October 10 and change the terms as per new facility.

The company has also discharged the due interest payment on the same date.

The revised financing arrangement has lowered borrowing cost and extended repayment tenure which will generate cumulative additional cash flow of about ₹130 crore till FY28.

Suresh Kumar Bandi, Joint Managing Director, Steel Exchange India, said the sanctioned refinance facilities at lower cost for repayment of existing high-cost debt will ease interest burden, improve cash flows and provide the flexibility to support growth.

“This proactive financial management positions us well to pursue our long-term business objectives with greater confidence,” he added.

Published on October 3, 2025