S.A.L. Steel Limited has informed the Exchange about General Updates inter alia availing Term Loan From Axis Finance Limited
SALSTEEL · price
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S.A.L. Steel Limited has taken a new term loan of Rs. 50 crores from Axis Finance Limited, as per sanction letter dated May 26, 2026. The loan will be used to repay an existing Inter Corporate Deposit (ICD) owed to AIA Engineering Limited. The loan is secured against the company's entire immovable fixed assets, current assets, and movable fixed assets located at its Bharapar facility in Gujarat. Additionally, personal guarantees from promoters Mahesh Kumar Agarwal and Kaustubh Agarwal, plus a corporate guarantee from Sree Metaliks Limited, have been provided. The loan has a tenure of 5 years repayable in 20 equal quarterly installments. This is not a related party transaction.
The company is swapping short-term ICD debt for a structured 5-year term loan, which may provide better repayment visibility. However, the additional Rs. 50 crore debt increases the company's leverage and financial obligations. Shareholders should monitor whether this refinancing improves or strains the company's debt servicing capacity.