Penny Stock Below Rs 10 in Focus as Board Approves Rs 700 Crore Fund Raise; Achieves Investment-Grade Credit Rating
DSIJ Intelligence-1Categories: Penny Stocks, Trending
The stock is up by 34.2 per cent from its 52-week low of Rs 7.16 per share.
Steel Exchange India Limited (SEIL) has achieved a major financial milestone with its Board of Directors approving a capital raise of up to Rs 700 crore. This funding, to be secured through a mix of equity, debt instruments, or convertible warrants, is designed to fortify the company’s balance sheet and provide the financial flexibility required for long-term growth. This move marks a strategic shift toward capital readiness as the company scales its operations in the competitive steel sector.
Accompanying this announcement is a significant credit rating upgrade by Infomerics Valuation and Rating Limited (IVR), which has elevated SEIL to investment-grade status. Key facilities, including listed Non-Convertible Debentures and cash credit, were upgraded to IVR BBB-/Stable, while short-term facilities reached IVR A3. This transition reflects SEIL's improved operational discipline, enhanced debt-servicing capabilities, and overall strengthened financial health, which is expected to lower future borrowing costs.
The capital infusion and improved credit standing are timed to support SEIL’s expansion into high-margin specialty and value-added steel products. By aligning with the government's PLI Scheme and the 'Atmanirbhar Bharat' initiative, the company aims to enhance its product mix and improve working capital management. These strategic steps position SEIL to transition from a regional player into a more robust national entity focused on import substitution and industrial growth.
About the Company
Established in 1999 as part of the Vizag Profiles Group, Steel Exchange India Limited (SEIL) has transitioned from a trading platform into a premier integrated steel manufacturer serving the infrastructure and Construction sectors across Andhra Pradesh and Telangana. Operating a comprehensive facility near Visakhapatnam, the company maintains full vertical integration—from sponge iron and power generation to the production of its flagship SIMHADRI TMT rebars, which are trusted for critical Defence and national infrastructure projects. Moving forward, SEIL is leveraging the PLI scheme to expand into specialty steels, directly supporting the 'Atmanirbhar Bharat' initiative by focusing on import substitution and high-value industrial products.
The company has a market cap of over Rs 1,100 crore and currently, this Small-Cap stock is trading below Rs 10 per share. The stock is up by 34.2 per cent from its 52-week low of Rs 7.16 per share.
Disclaimer: The article is for informational purposes only and not investment advice.