SAL Steel Board Approves ₹150 Crore Working Capital Facility, Seeks Shareholder Nod for ₹2000 Crore Borrowing Limit
S.A.L. Steel's Board approved a ₹150 crore working capital facility from YES Bank, secured by company assets and guarantees. Shareholders will be asked to approve an enhanced borrowing limit of up to ₹2,000 crore. The company also approved a postal ballot notice, with March 27, 2026, as the cut-off date.
The approval of a large credit facility and the potential for significantly increasing the company's borrowing capacity can have a substantial impact on its financial operations and expansion capabilities.
The approval of a significant credit facility and the proposal to enhance borrowing limits indicate positive financial management and plans for future growth.
S.A.L. Steel Limited announced that its Board of Directors, in a meeting held on March 28, 2026, approved several key financial and corporate actions. The Board sanctioned the availing of a credit facility amounting to ₹150 crore from YES Bank Limited. This working capital facility, including a cash credit limit, is based on the bank's sanction letter dated March 25, 2026. The funds will be utilized for the company's working capital requirements and will be secured by a hypothecation of current assets and all movable fixed assets of the company, along with an equitable mortgage on the industrial property located at Survey No. 245, Village Bharapar, Tal. Gandhidham, Kutch Dist., Gujarat. Personal guarantees from Mahesh Kumar Agarwal and Kaustubh Agarwal, along with a corporate guarantee from Sree Metaliks Limited, will also be in place.
Furthermore, the Board approved a proposal to seek shareholder approval under Sections 180(1)(a) and 180(1)(c) of the Companies Act, 2013, to enhance the company's borrowing limit. The company may borrow up to ₹2,000 crore (Rupees Two Thousand Crore Only) from time to time for business purposes, which would include mortgaging and/or charging of all or any of the company's movable and/or immovable properties. This enhancement is subject to shareholder approval.
The Board also authorized the execution of an amendment to the deed of hypothecation between the company and AIA Engineering Ltd. Additionally, the Notice of Postal Ballot was approved, with March 27, 2026, set as the cut-off date for determining voting rights. Mr. Kamlesh M. Shah of M/s. Kamlesh M. Shah, Practicing Company Secretaries, Ahmedabad, has been appointed as the scrutinizer for the postal ballot e-voting process.
The Board meeting commenced at 17:30 hrs and concluded at 19:30 hrs on March 28, 2026.
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S.A.L. Steel Limited filed this with the NSE as a statutory disclosure, categorised under debt fundraising. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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