SAL Steel Limited has issued a Postal Ballot Notice to its shareholders seeking approval for multiple material related party transactions, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 110 of the Companies Act, 2013.

Key Quantitative Figures and Transactions

Item No. 1: Ratification of Material Related Party Transaction with Lawrence Merchants Private Limited
  • Transaction: Unsecured loan availed from Lawrence Merchants Private Limited (NBFC Entity)
  • Period: 4th September, 2025 to 31st March, 2026
  • Principal Amount: ₹224.25 Crore
  • Interest Amount: ₹4.41 Crore
  • Total Transaction Value: ₹228.67 Crore
  • Interest Rate: 10% per annum
  • Purpose: Urgent maintenance of old machineries and plant modernization
Item No. 2: Ratification of Material Related Party Transaction with Sree Metaliks Limited
  • Transaction: Unsecured loan facilities, raw material purchases, and product sales
  • Period: 1st April, 2026 to 18th November, 2026 (voting conclusion date)
  • Historical Component (Utilized): ₹129.62 Crore
  • Contingent Operational Buffer: ₹45.00 Crore
  • Total Cumulative Approval Limit: ₹174.62 Crore
  • Breakdown:
  • Purchase of Raw Materials (Iron Ore): ₹1.51 Crore utilized + ₹10.00 Crore buffer = Up to ₹11.51 Crore
  • Sale of Finished Goods/Captive Power: ₹0.11 Crore utilized + ₹5.00 Crore buffer = Up to ₹5.11 Crore
  • Unsecured Loan Facilities: ₹128.00 Crore utilized + ₹30.00 Crore buffer = Up to ₹158.00 Crore
Item No. 3: Prior Approval for Transactions with Sree Metaliks Limited (1 Year)
  • Period: 20th November, 2026 to 19th November, 2027
  • Approved Limits:
  • Purchase of Raw Materials: Up to ₹300 Crore
  • Sale of Finished Goods: Up to ₹50 Crore
  • Corporate Guarantee by SML: Up to ₹500 Crore
  • Loan Facilities Availment: Up to ₹200 Crore (including interest)
  • Total Potential Exposure: ₹1,050 Crore
Item No. 4: Prior Approval for Transactions with Lawrence Merchants Private Limited (1 Year)
  • Period: 20th November, 2026 to 19th November, 2027
  • Transaction: Unsecured loans including interest
  • Approved Limit: Up to ₹200 Crore
  • Interest Rate: 10% per annum
Item No. 5: Prior Approval for Transactions with Elite Metaliks Private Limited (1 Year)
  • Period: 20th November, 2026 to 19th November, 2027
  • Approved Limits:
  • Purchase of Raw Materials: Up to ₹100 Crore
  • Sale of Finished Goods: Up to ₹50 Crore
  • Total Potential Exposure: ₹150 Crore

Dates of Action

  • Cut-off Date for Voting Rights: Friday, 9th October, 2026
  • Remote e-voting Start: Tuesday, 20th October, 2026 at 9:00 AM IST
  • Remote e-voting End: Wednesday, 18th November, 2026 at 5:00 PM IST
  • Results Declaration: On or before Friday, 20th November, 2026
  • Resolutions Deemed Passed: Wednesday, 18th November, 2026 (if approved)

Parties Involved

  • Related Parties:
  • Sree Metaliks Limited (Holding Company, 57.51% equity holding)
  • Lawrence Merchants Private Limited (NBFC Entity, Common Director)
  • Elite Metaliks Private Limited (Common Director)
  • Scrutinizer: CS Kamlesh M. Shah of M/s. Kamlesh M. Shah & Co.
  • E-voting Service Provider: National Securities Depository Limited (NSDL)
  • Registrar and Transfer Agent: Kfin Technologies Limited

Purpose and Rationale

The company states that these transactions are necessary due to recent strategic corporate takeover by Sree Metaliks Limited and the immediate need to stabilize aging manufacturing assets and infrastructure. The core Sponge Iron manufacturing plants require high-grade, uninterrupted supply of Iron Ore to run efficiently. The funding is required to avoid operational downtime, overhaul outdated machinery, and fund structural modernization.

Financial and Operational Impact

All transactions are stated to be on an arm's length basis and in the ordinary course of business. The transactions exceed the 10% materiality threshold of the company's annual consolidated turnover as per the last audited financial statements (2024-25).

Capital Structure Impact

The document does not disclose specific impact on capital structure, share capital, or promoter holding percentages.

Voting Procedure

The company has engaged NSDL for e-voting services. Voting will be conducted entirely through electronic means. Members as on the cut-off date (9th October, 2026) are eligible to vote. The notice is being sent only through electronic mode to registered email addresses.

Additional Information

The explanatory statement provides detailed SEBI-mandated 16-line disclosure matrices for each resolution, including nature of relationships, valuation benchmarks, audit committee recommendations, and voting exclusions for interested parties.