Acquisition of Equity shares of BINDALS SPONNGE INDUTRIES LIMITED Under NCLT Resolution plan.
SCANSTL · price
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Scan Steels' board approved unaudited Q3 FY26 results (quarter ended Dec 31, 2025), with standalone total income of Rs. 191.63 crore and net profit of Rs. 3.10 crore (EPS Rs. 0.59). For nine months FY26, standalone net profit stood at Rs. 12.89 crore on total income of Rs. 556.70 crore. The board also approved joining a consortium with Kalinga Allied Industries India Pvt Ltd to acquire Bindals Sponge Industries Limited under an NCLT-approved resolution plan. Scan Steels and Kalinga Allied will contribute funds in a 50:50 ratio, with Scan Steels committing approximately Rs. 20 crore in equity (plus its share of an additional Rs. 20 crore secured loan arranged via an NBFC). The total project cost is estimated at around Rs. 180 crore including working capital, with funds to be infused by March 31, 2026. Bindals Sponge has been under the Corporate Insolvency Resolution Process (CIRP) since 2018 with zero turnover, but owns a 350 TPD DRI kiln and a 12 MW captive power plant; production is expected to restart from Q4 FY27 after renovation.
The acquisition gives Scan Steels operational control of a distressed steel asset with existing plant infrastructure, potentially expanding its manufacturing capacity once revived by FY27. While the Rs. 20 crore equity commitment is sizeable relative to its standalone nine-month profit of ~Rs. 13 crore, the 50:50 cost-sharing and NBFC-backed loan structure limit the cash strain. Short-term impact on stock may be neutral to mildly positive as the revival is a multi-year execution play with no immediate revenue contribution.