Board approves Rs 75 Cr term loan from Kotak Mahindra Bank

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SALSTEEL · price

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Price reactionminutes from the announcement price · days from the prior close

+1.8%Reaction day

₹98.10

prior close

₹98.18

announcement price

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Nifty Microcap 250market · in no size index; the smallest one is used-1.3%+3.1% vs market

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Minutes after the announcementfrom the announcement price · no benchmark

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Reaction day

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Next day

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AI summary

SAL Steel board approved availing an additional term loan of Rs 75 crore from Kotak Mahindra Bank, along with renewal of existing working capital facilities of Rs 49 crore, aggregating Rs 124 crore. The funds will be used for part repayment of ICD owed to AIA Engineering Limited. The borrowing is secured by current assets, movable fixed assets, and equitable mortgage on the company's industrial property at Kutch, Gujarat. Personal guarantees from promoters Mahesh Kumar Agarwal and Kaustubh Agarwal, and corporate guarantee from Sree Metaliks Limited, will back the facility.

Likely market impact

New Rs 75 Cr debt from Kotak Mahindra signals bank confidence, but use of funds to repay ICD to AIA Engineering raises leverage concerns for shareholders.