SAL Steel secures ₹50 crore term loan from Axis Finance
What's the deal? SAL Steel Limited has secured a ₹50 crore term loan from Axis FinanceDealroom has a profile for this one. Try Dealroom → Limited, sanctioned on May 26, 2026. The loan is earmarked specifically to repay inter-corporate deposits held with AIA EngineeringDealroom has a profile for this one. Try Dealroom → Limited.
The facility carries a five-year tenor and is repayable in 20 equal quarterly instalments.
It is secured by a mortgage of SAL Steel's immovable and movable fixed assets and current assets, along with corporate guarantees from Sree Metaliks Limited and personal guarantees from managing directors Mahesh Kumar Agarwal and Kaustubh Agarwal.
Why now? The borrowing is part of SAL Steel's effort to manage its liabilities and optimise its capital structure. By replacing inter-corporate deposits with a structured term loan, the company gains a clearer repayment schedule and potentially better terms.
The transaction was disclosed to stock exchanges under Regulation 30 of the SEBI listing obligations. SAL Steel confirmed that Axis Finance is not a related party and that the deal was conducted at arm's length.
What could go wrong? The loan is heavily collateralised — SAL Steel has pledged virtually all its fixed and current assets, both present and future. If the company struggles to meet quarterly repayments, it risks losing critical operational assets.
Personal guarantees from both managing directors also raise the stakes considerably for the company's leadership.
The signal: Mid-sized Indian steel companies are actively restructuring their balance sheets, swapping informal inter-corporate borrowings for institutional credit. This reflects a broader push toward financial discipline and transparency in India's industrial sector, particularly as regulatory scrutiny around related-party transactions and corporate governance tightens.
Read more: scanx.trade
