SFAL Acquires Nilachal Refractories Shares Amid Delisting Push

SFAL Speciality Alloys Limited acquired 19,250 shares of Nilachal Refractories Ltd. on April 24, 2026, through an off-market transaction. This purchase did not change SFAL's total shareholding percentage, which remained at 0.09%. The diluted shareholding percentage also stayed at 0% before and after the transaction.

This minor share acquisition is part of SFAL's larger strategy to delist Nilachal Refractories from the stock exchanges.

Company Background and SFAL's Delisting Plan

Nilachal Refractories, established in 1977, manufactures refractories for key industries like cement, steel, and petrochemicals. The company has encountered significant financial difficulties, including being declared a sick company and references to the BIFR. It has most recently reported net losses and negative equity.

SFAL Speciality Alloys Limited, a producer of basic metals and specialty alloys, has been consolidating its position in Nilachal Refractories. SFAL's board approved a voluntary delisting proposal on March 31, 2026. This follows a substantial acquisition of 15,00,000 shares by SFAL on April 24, 2026, which reportedly increased its stake to 70.18%. The delisting effort aims to conclude with an open offer for public shares in May 2026, priced at ₹22.00 per share.

Key Developments and Risks

The acquisition of 19,250 shares did not impact SFAL's control or overall shareholding percentage in Nilachal Refractories. The delisting process initiated by SFAL remains the primary development for Nilachal Refractories.

Investors should note Nilachal Refractories' history of financial distress. The company has also faced regulatory penalties from the BSE for non-compliance, such as late filings and delayed appointments. Its financial performance has been consistently marked by net losses and negative equity.

Nilachal Refractories operates in the refractory sector alongside larger domestic and international players like RHI Magnesita India Ltd., Vesuvius PLC, and Morganite Crucible India Ltd. Its market capitalization is significantly smaller than these peers.

What to Monitor Next

Key points to track include:

• The progress and outcome of SFAL Speciality Alloys' open offer for Nilachal Refractories shares.
• Any further stake acquisitions or disclosures by SFAL or other relevant entities.
• Nilachal Refractories' ongoing financial performance and any operational turnaround efforts.
• Regulatory updates concerning the delisting process.
• Potential strategic changes for Nilachal Refractories once it is under SFAL's full control post-delisting.