Steel Exchange India is raising Rs 700 crore through a preferential issue, private placement, qualified institutional placement, or public issue. In an exchange filing, the company stated that its Board of Directors has approved a proposal to raise capital.
The company added in the disclosure that it will raise the funds through the issuance of equity shares, equity-linked instruments, debt instruments, convertible equity warrants, convertible securities, and/or non-convertible debentures.
The company did not specify how it plans to utilise the raised capital.
Steel Exchange financials
Steel Exchange reported a 22 per cent profit decline in the September quarter. The company posted a standalone profit of Rs 2.1 crore in Q2 FY26, compared to Rs 2.7 crore in Q2 FY25. Its revenue from operations also declined by 11 per cent in the same period.
Steel Exchange reported a standalone revenue of Rs 231 crore in Q2 FY26. However, its revenue from operations in the same quarter of the previous fiscal year was Rs 261 crore.
During the September quarter, the company received term loans of Rs 110. Crore and Rs 40 crore from Kotak Mahindra Investment and Oxyzo Financial Services, respectively, at an interest rate of 12 per cent per annum, repayable in 14 quarterly instalments. At the time, the company stated that it plans to utilise the loan proceeds for prepayment of high-cost short-term loans, unlisted NCDs in full and part prepayment of listed NCDs.
Also, in its September financial statements, Steel Exchange stated that it had total assets worth Rs 1,384 crore at the end of Q2 FY25, increasing from Rs 1,284 crore in Q2 FY25
Steel Exchange share price
Steel Exchange’s share price has increased by 2.81 per cent in a month. However, in the last 6 months and a year, the company’s stock price has fallen by 9.5 per cent and 10.7 per cent, respectively.
The company stock opened at Rs 9.39 on December 30. In the last 5 trading sessions, Steel Exchange India’s share price has increased by 7.2 per cent.