Acquisition of Equity shares of BINDALS SPONNGE INDUTRIES LIMITED Under NCLT Resolution plan.
SCANSTL · price
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Scan Steels Ltd announced two key outcomes from its February 5, 2026 board meeting. First, the company will join a consortium with Kalinga Allied Industries India Pvt Ltd to acquire and revive Bindals Sponge Industries Ltd, which has been under the Corporate Insolvency Resolution Process since 2018 and has had zero turnover for the last three years. Scan Steels and Kalinga Allied will contribute funds in a 50:50 ratio, with Scan Steels committing Rs. 20 crore towards equity (against a total project cost of roughly Rs. 60 crore, to be paid by March 31, 2026, with overall investment projected at ~Rs. 180 crore including working capital). Bindals has a 350 TPD DRI kiln and 12 MW captive power plant, with production expected to start from Q4 FY27 after overhauling. Second, Q3 FY26 standalone revenue rose to Rs. 191.6 crore (vs Rs. 174.6 crore in Q3 FY25) with net profit of Rs. 3.10 crore (vs Rs. 2.80 crore). On a consolidated basis, net profit stood at Rs. 3.48 crore. Scan Steels will manage day-to-day operations of Bindals after reconstitution.
Shareholders should note Scan Steels is committing Rs. 20 crore upfront (plus further 50% of working capital needs) into a turnaround asset that has been non-operational since 2018, so near-term returns depend entirely on revival execution starting Q4 FY27. Q3 results show modest year-on-year revenue and profit growth, providing some stability to fund the acquisition.