S.A.L. Steel Ltd Secures Rs 124 Crore Financing Package

New Rs 75 crore term loan sanctioned alongside Rs 49 crore working capital renewal.
Total credit facility from Kotak Mahindra Bank reaches Rs 124 crore.

Reader Takeaway: New debt clears inter-corporate obligations, but reliance on personal and corporate guarantees increases promoter-level financial exposure.

What just happened

S.A.L. Steel Ltd has finalized a financial arrangement with Kotak Mahindra Bank Limited totaling Rs 124 crore. The Board of Directors approved this on October 1, 2026, following a sanction letter received on September 29, 2026. The package includes a fresh term loan of Rs 75 crore and the renewal of existing working capital limits of Rs 49 crore.

Why this matters

The primary objective of this infusion is the partial repayment of an Inter-Corporate Deposit (ICD) held by AIA Engineering Limited. By replacing high-cost or short-term ICDs with a structured bank facility, the company is likely aiming to stabilize its immediate repayment schedule and optimize its debt structure under the supervision of a major private lender.

Security and Guarantees

The facility is secured by a charge on all current and movable fixed assets of the company. Additionally, the company has provided an equitable mortgage on its industrial property in Gandhidham, Kutch. The loan is backed by unconditional personal guarantees from Chairman and Managing Director Mahesh Kumar Agarwal and Managing Director Kaustubh Agarwal, along with a corporate guarantee from Sree Metaliks Limited.

What to track next

Investors should track the company’s ability to service this debt without further reliance on promoter-level guarantees. Future disclosures regarding the reduction of outstanding ICDs and the impact of interest expenses on quarterly net profit margins will be critical for assessing the firm's financial health.