S.A.L. Steel Limited has informed the Exchange about Agreements
SALSTEEL · price
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S.A.L. Steel Limited has executed a Deed of Hypothecation dated 28 March 2026 with Yes Bank Limited to avail a Working Capital Demand Loan (with a sublimit cash credit facility) of Rs. 150 Crores. The funds will be used for the company's working capital needs, as per the sanction letter dated 25 March 2026. The facility is secured by the company's current assets and movable fixed assets at its Kutch plant, along with personal guarantees from promoters Mahesh Kumar Agarwal and Kaustubh Agarwal, and a corporate guarantee from Sree Metaliks Limited. The loan is repayable on demand and subject to annual renewal, with the interest rate to be decided at the time of disbursement. The transaction is not a related-party deal and the company currently has no outstanding loan amount under this facility.
This new Rs. 150 Crore working capital line strengthens S.A.L. Steel's short-term liquidity and gives it room to fund daily operations and growth. For shareholders, it signals that the company has secured bank funding for its working capital needs, but the fact that the loan is repayable on demand and backed by promoter personal guarantees may raise questions about balance sheet leverage and reliance on bank support.