By Our Correspondent
BHUBANESWAR: Steel and Mines Tycoon Mahesh Kumar Agarwal led Sree Metaliks Ltd’s open offer to Acquire up to 26 Percent of Gujarat based SAL Steel Ltd for Rs 94.09 Crore is scheduled to Open on October 31 this year, close on November 14 in same.
With this SML is poised to hold a substantial 96.98 Percent stake in SAL Steel, signaling a significant change in Company’s Ownership Structure.
SAL Steel Ltd, a major player in the manufacturing of Direct Reduced Iron, Ferro Alloys, and Iron Ore pellets, was the target of a significant open offer by Sree Metaliks Ltd.
Sree Metaliks Ltd has plants and mines in Odisha and running operations both at Angul and Keonjhar, home turf of Odisha Chief Minister Mohan Charan Majhi. Company is expanding its Odisha facilities with over Rs 1500 Crore to Rs 2000 Crore investment.
Sree Metaliks Limited is acquiring a controlling stake in SAL Steel Limited, making Sree Metaliks the new promoter. This involves a share purchase from existing promoters and a preferential allotment, which has triggered a mandatory open offer for public shareholders to buy up to 26% of SAL Steel’s shares at ₹25 per share.
Sree Metaliks has signed a Share Purchase Agreement (SPA) to buy shares from current promoters (Shah Alloys Limited and SAL Care Private Limited) and a Share Subscription Agreement (SSA) for a preferential issue of shares and warrants to raise capital.
After the transactions, Sree Metaliks will become the new promoter of SAL Steel, and is expected to hold approximately 37.99% of the company’s shares. The open offer is scheduled to open on October 31, 2025, and close on November 14, 2025.
The open offer, valued at approximately ₹94.09 crore, aims to acquire up to 3,76,39,342 fully paid-up equity shares of SAL Steel at a price of ₹25.00 per share. This represents 26% of the expanded share capital of SAL Steel.
Sree Metaliks has agreed to purchase 4,29,59,495 equity shares from the current promoters of SAL Steel at ₹25.00 per share, totaling ₹107.39 crore.
SAL Steel will issue 1,92,50,000 new equity shares and 3,57,50,000 convertible warrants to Sree Metaliks on a preferential basis.
Upon completion of these transactions and assuming full acceptance of the open offer, Sree Metaliks is poised to hold a substantial 96.98% stake in SAL Steel, signaling a significant change in the company’s ownership structure.
This acquisition is expected to strengthen Sree Metaliks’ presence in the steel industry and potentially improve operational efficiencies. The company has expressed its intention to continue SAL Steel’s existing business operations while exploring opportunities for diversification and improvement.
Following the completion of the first tranche of share purchases, the current promoters of SAL Steel will cease to be in control of the company. Sree Metaliks will acquire control, and the existing promoters will be reclassified from ‘promoter’ to ‘public’ shareholders.
This open offer marks a significant development in the Indian steel industry, potentially reshaping the competitive landscape. Shareholders of SAL Steel now have an opportunity to evaluate this offer in light of the company’s future prospects under new management.
