Steel Exchange India's ₹350 Crore Refinancing Boosts Cash Flow, Reduces Debt
Steel Exchange India, a prominent South Indian steel manufacturer, has successfully refinanced its existing debt. The move has resulted in substantial savings and improved cash flow.
The refinancing, secured through a ₹350 crore consortium led by Kotak Mahindra Investments and Oxyzo Financial Services, has allowed the company to prepay a ₹25 crore term loan, ₹84 crore of secured unlisted NCDs, and partially redeem ₹32 crore of secured listed NCDs. The remaining ₹200 crore is set to be disbursed by October 10 to acquire outstanding non-convertible debentures.
The revised financing arrangement has lowered borrowing costs and extended repayment tenure, generating an additional cash flow of about ₹130 crore till FY28. This has significantly reduced the outstanding principal of listed NCDs to ₹199 crore, to be acquired by Kotak Credit Opportunities Fund on October 10. The company has also used ₹150 crore to prepay existing high-cost NCDs and term loans.
Steel Exchange India's refinancing is expected to ease its interest burden, improve cash flows, and support growth, as stated by Joint Managing Director Suresh Kumar Bandi. The successful restructuring of its debt portfolio positions the company for future expansion.
