Steel Exchange India Limited , a key player in South India’s private steel sector and the company behind the well-known ‘SIMHADRI TMT’ brand, has successfully secured a ₹350 crore refinancing package aimed at reducing finance costs and strengthening its balance sheet. On September 30, 2025, the company received sanction for the new facility from a consortium that includes Kotak Mahindra Investments Limited, Oxyzo Financial Services Limited, and Kotak Credit Opportunities Fund.
Of the total, ₹150 crore has already been disbursed and applied toward early repayment of high-interest borrowings. The remaining ₹200 crore is expected to be released by October 10, 2025, subject to necessary approvals, and will be used to acquire outstanding listed Non-Convertible Debentures (NCDs) from existing investors.
As of September 30, 2025, SEIL has successfully completed a series of debt repayments and redemptions. The company fully prepaid a ₹25 crore term loan, redeemed secured unlisted NCDs worth ₹84.30 crore in full, and partially redeemed secured listed NCDs amounting to ₹32.35 crore. Following these actions, the outstanding principal on listed NCDs stands at ₹198.56 crore, which is expected to be acquired by Kotak Credit Opportunities Fund and restructured under revised facility terms by October 10, 2025. On the same date, SEIL also ensured that all due interest payments were made.
The refinancing initiative provides significant cost advantages for SEIL. Under the new facility, the company will benefit from a lower borrowing cost, with the interest rate reduced by nearly 5.5% compared to the earlier rate of around 18.75% per annum. This adjustment translates into meaningful annual savings and strengthens the financial efficiency of the organization.
Another important aspect of the refinancing is the extended loan tenure. The maturity has now been pushed out to September 2030, offering a five-year repayment window. This extension is expected to generate an estimated cumulative cash flow benefit of approximately ₹130 crore through FY2028, providing SEIL with greater financial flexibility to pursue growth and operational goals.
Overall, the refinancing marks a major step forward in strengthening SEIL’s financial position. By improving liquidity, optimizing the capital structure, and reducing borrowing costs, the company is better placed to deliver long-term value for its shareholders while reinforcing its ability to sustain growth in a competitive market.
Suresh Kumar Bandi, Joint Managing Director of Steel Exchange India Limited, stated “This refinancing is a strategic step toward improving our financial flexibility and lowering our interest burden. The improved terms will boost cash flow, support our growth initiatives, and reinforce our long-term financial stability.”
Steel Exchange India Limited (SEIL), part of the Vizag Profiles Group, is a prominent manufacturer of TMT rebars under the ‘SIMHADRI TMT’ brand. Established in 1999, the company has evolved from a trading and online steel platform to a fully integrated steel manufacturer with operations concentrated in Andhra Pradesh and Telangana.
SEIL operates a vertically integrated steel and power facility in Vizianagaram District, near Visakhapatnam. Its plant includes sponge iron, billet manufacturing, a rolling mill, and captive power generation—enabling seamless backward and forward integration in long steel production. With a strong supply record to the Indian Armed Forces and key infrastructure projects, SEIL is recognized for its commitment to quality and reliability. In alignment with India’s ‘Atmanirbhar Bharat’ initiative, the company plans to expand into specialty steel production under the PLI scheme to help reduce imports and enhance its value-added offerings.
