S.A.L. Steel Limited has informed the Exchange regarding Outcome of Board Meeting held on March 28, 2026.
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S.A.L. Steel's board, at its meeting on March 28, 2026, approved availing a Rs. 150 crore working capital facility (including cash credit) from YES Bank, secured by hypothecation on current and movable fixed assets plus an equitable mortgage on the company's industrial property at Bharapar, Gandhidham. The facility is backed by personal guarantees from promoters Mahesh Kumar Agarwal and Kaustubh Agarwal, and a corporate guarantee from group company Sree Metaliks Limited. The board also approved seeking shareholder approval via postal ballot to raise the overall borrowing limit to Rs. 2,000 crore under Section 180(1)(a) and 180(1)(c) of the Companies Act, 2013, along with authority to mortgage/charge company assets accordingly. Additionally, the board authorized execution of an amendment to the hypothecation deed with AIA Engineering Ltd. A postal ballot notice was approved with March 27, 2026 as the voting cut-off date, and Mr. Kamlesh M. Shah was appointed as scrutinizer for the e-voting process.
The company is stepping up leverage with a fresh Rs. 150 crore working capital line and is seeking shareholder nod to widen its borrowing ceiling to Rs. 2,000 crore, signalling appetite for further debt-driven growth. While promoter personal guarantees indicate management confidence, higher borrowings and pledging of company assets raise leverage and security-burden risks for shareholders. The postal ballot outcome on the borrowing cap resolution will be a key event to watch.