Sree Metaliks Limited has taken a major strategic step in the steel sector with the acquisition of a 39.30% stake in SAL Steel Limited through a preferential allotment. The deal, completed on November 1, 2025, involves a combination of equity shares and convertible warrants, strengthening Sree Metaliks’ influence and paving the way for its classification as the new promoter of SAL Steel.
Deal Structure and Financial Details
Under the preferential issue, Sree Metaliks has subscribed to:
- 1,92,50,000 equity shares priced at ₹18 per share, amounting to ₹34.65 crore, representing 13.57% of SAL Steel’s equity capital.
- 3,57,50,000 convertible warrants, also priced at ₹18 each, with a total value of ₹64.35 crore. These warrants can be converted into equity shares within 18 months of allotment, adding another 25.34% stake upon conversion.
The combined investment of ₹99 crore gives Sree Metaliks a potential 39.30% ownership in SAL Steel.
Strategic Impact
This acquisition marks a significant shift in SAL Steel’s ownership structure. Upon completion of the open offer process, Sree Metaliks will be reclassified as the promoter, while the existing promoter group will relinquish their status.
The move is expected to create operational synergies between the two companies, particularly in areas such as raw material sourcing, production efficiency, and market expansion within the domestic steel industry.
Outlook
Industry analysts view this transaction as a strategic consolidation that could enhance Sree Metaliks’ presence across the value chain of the steel manufacturing sector. The financial infusion will also provide SAL Steel with additional liquidity to strengthen operations and fund growth initiatives.
Summary:
Sree Metaliks Limited has acquired a 39.30% stake in SAL Steel through a ₹99 crore preferential allotment, comprising both shares and convertible warrants. The move will see Sree Metaliks emerge as SAL Steel’s new promoter after the open offer, marking a key step toward strategic integration and future expansion in India’s steel industry.
Disclaimer:
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