Intimation under Regulation 30 of SEBI (LODR) Regulation 2015 inter alia availing Term Loan from Axis Finance Bank Limited
SALSTEEL · price
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S.A.L. Steel Ltd has availed a Rs. 50 crore Term Loan from Axis Finance Limited. The loan has a tenure of 5 years, repayable in 20 equal quarterly installments. The funds will be used to repay an Inter Corporate Deposit (ICD) owed to AIA Engineering Limited. The loan is secured by mortgage of all fixed assets and current assets of the company, along with personal guarantees from Mahesh Kumar Agarwal and Kaustubh Agarwal, and a corporate guarantee from Sree Metaliks Limited.
The company is taking on fresh debt of Rs. 50 crore to replace an existing ICD liability. While this extends the repayment timeline, it increases the company's debt obligations. Shareholders should monitor the company's ability to service this loan given the quarterly repayment commitment.