AGM and Corporate Actions
Suraj Products Limited convened its 35th Annual General Meeting on September 12, 2026, to approve audited financial statements and declare a final dividend of ₹2.25 per share (22.50% on face value of ₹10). Key resolutions included increasing authorized share capital from ₹12 crore to ₹15 crore and alterations to the Memorandum and Articles of Association to align with Companies Act 2013. The company proposed a significant preferential issue of 25 lakh warrants and 5 lakh equity shares at ₹231 per share/warrant to raise ₹69.3 crore.
Financial Performance FY 2025-26
The company reported revenue from operations of ₹30,378.67 lakhs (primarily from TMT Bar, MS Billet, and Pig Iron sales) and profit after tax of ₹1,884.79 lakhs with EPS of ₹16.53. The balance sheet shows strong fundamentals with total equity of ₹16,594.19 lakhs, low debt-to-equity ratio of 0.03, net cash position, and current ratio of 8.62. Production metrics included 37,981 MT of Sponge Iron, 20,202 MT of Pig Iron, 71,242 MT of MS Billets, and 62,861 MT of TMT Bars.
Fundraising Purpose and UAE Expansion
The ₹69.3 crore preferential issue is intended for investment in the company's UAE subsidiary, Suraj Iron & Steel Manufacturers L.L.C.-S.P.C. (100% owned), for establishing a steel manufacturing unit in Abu Dhabi with capacity of 4,00,000 tonnes per annum. The total project cost is ₹200 crore, funded through ₹55 crore from preferential issue, ₹55 crore from internal accruals, ₹65 crore term loan, and ₹25 crore working capital loan, with expected operational date in FY 2027-28.
Additional Disclosures and Contingencies
The company has contingent liabilities including disputed tax demands of ₹73.87 lakhs and a corporate guarantee of ₹430 lakhs for subsidiary credit facilities. An arbitration award of ₹746.44 lakhs plus interest was pronounced in favor of the company concerning a steam turbine dispute. CSR expenditure of ₹58.69 lakhs was spent on rural development, healthcare, education, and sports in Sundargarh district. The company maintains ICRA BBB+ (Stable) rating for long-term facilities and ICRA A2 for short-term facilities.
Corporate Governance and Shareholding
The Board consists of 6 directors (1 executive, 3 non-executive, 2 independent) with 4 meetings held during FY 2025-26. Promoter holding stands at 73.70% pre-issue, expected to be 72.23% post-issue with no change in control envisaged. Key managerial personnel include Mr. Y.K. Dalmia (MD), Mr. Gagan Goyal (ED), Mr. M.K. Hati (CFO), and Mr. A.N. Khatua (CS).