SAL Steel: Sree Metaliks Boosts Stake to 57.51% in 2026

Introduction

SAL Steel Ltd. has confirmed a significant consolidation of its promoter shareholding, with Sree Metaliks Limited increasing its stake to a controlling 57.51%. The change follows the conversion of 3,57,50,000 warrants into equity shares, a move that infuses ₹48.26 crore into SAL Steel and solidifies the promoter's strategic influence over the company's future direction.

Details of the Warrant Conversion

The transaction was executed through the allotment of 3,57,50,000 equity shares to Sree Metaliks Limited. This allotment was triggered by the payment of the remaining 75% of the issue price for the warrants. Sree Metaliks paid ₹13.50 per warrant against an issue price of ₹18, bringing the total capital infusion from this specific conversion to ₹48,26,25,000. This action underscores the promoter's commitment to strengthening the company's financial position and long-term growth prospects.

Impact on Capital Structure and Shareholding

The direct consequence of this capital infusion is a notable expansion of SAL Steel's equity base. The company's Issued, Subscribed, and Paid-up Equity Share Capital has now increased to ₹144,76,67,000, which is composed of 14,47,66,700 equity shares with a face value of ₹10 each. The most critical outcome is the shift in the shareholding pattern. Sree Metaliks Limited's ownership has jumped from 43.58%, or 4,75,12,199 shares, to a majority stake of 57.51%, equivalent to 8,32,62,199 shares. This gives the promoter a much stronger mandate to guide strategic initiatives.

A Strategic Consolidation Timeline

This recent warrant conversion is the culmination of a strategic acquisition process that began in 2025. In September 2025, Sree Metaliks entered into a Share Purchase Agreement to acquire a controlling stake from the previous promoters, Shah Alloys Limited and SAL Care Private Limited. This was followed by a preferential allotment of shares and warrants in November 2025, which initially gave Sree Metaliks a potential 39.30% stake. After completing a mandatory open offer as per SEBI regulations on December 11, 2025, Sree Metaliks was officially reclassified as the new promoter. The current conversion of warrants marks a decisive step in finalizing this transition of control.

Financial Implications of the Capital Infusion

The injection of ₹48.26 crore significantly bolsters SAL Steel's balance sheet. This fresh capital is expected to be strategically deployed to support key business objectives. Potential uses include reducing existing debt, augmenting working capital to streamline operations, or financing capital expenditure for modernization or expansion projects. A stronger financial base enhances the company's ability to navigate the cyclical nature of the steel industry and compete more effectively in the market. For investors, the effective use of these funds will be a key indicator of future performance.

Key Financial Metrics Post-Transaction

The recent corporate action has materially altered SAL Steel's financial and ownership structure. The table below summarizes the key changes.

Industry Landscape and Peer Context

SAL Steel operates in the highly competitive and capital-intensive Indian steel sector, which is subject to fluctuations in global commodity prices and domestic demand from the infrastructure and construction industries. A strong promoter holding is often viewed as a sign of stability and long-term vision. With a 57.51% stake, Sree Metaliks' control is now firmly in the upper bracket when compared to peers in the industry, where promoter holdings can range widely. This level of ownership is comparable to other focused industrial players and signals a deep commitment to SAL Steel's operational and financial turnaround.

Outlook for SAL Steel

The consolidation of promoter control and the fresh capital infusion position SAL Steel for a new phase of growth. The market will be closely watching how the new leadership leverages its enhanced control to improve operational efficiencies, expand market share, and drive profitability. The deployment of the newly acquired funds will be a critical factor in determining the company's trajectory. Investors and stakeholders will be looking for clear communication on the strategic roadmap and tangible results in the upcoming quarterly financial reports.

Conclusion

Sree Metaliks Limited has decisively cemented its control over SAL Steel by increasing its stake to 57.51% through a significant warrant conversion. This move not only provides SAL Steel with a crucial capital injection of ₹48.26 crore but also streamlines its leadership structure. The focus now shifts to execution, as the company is expected to leverage this renewed promoter confidence and financial strength to navigate the challenges of the steel industry and create sustainable value for its shareholders.