Penny Stock Below Rs 10 in Focus as the Company to Raise Rs 350 Crore; IMR Group to Invest Rs 300 Crore

On Thursday, shares of Steel Exchange India Ltd jumped 4.26 per cent to Rs 8.33 per share from its previous closing of Rs 7.99 per share. The stock’s 52-week high is Rs 11.55 per share and its 52-week low is Rs 7.06 per share. The stock surged approximately 4.50 per cent to its Intraday high of Rs 8.35.

As of 12:33: pm IST, the shares of Steel Exchange India Ltd were trading at Rs 8.33 per share on the NSE.

Steel Exchange India Ltd (SEIL), a key player in the Indian steel sector, has announced plans to raise Rs 350 crore through a preferential issue. Of this, Rs 300 crore will be infused by IMR Group, a Switzerland-headquartered international metals and mining conglomerate.

The investment by IMR Group will be routed through its Indian subsidiaries, India Coke and Power Private Ltd (ICPPL) and IMR Steel Private Ltd (ISPL), through subscription to share warrants. The capital infusion aims to strengthen SEIL’s operational structure, optimise its debt profile, and accelerate growth in India’s expanding steel market.

For IMR Group, the investment marks a forward integration move, expanding its presence in downstream steel manufacturing while leveraging its global expertise in mining and raw material sourcing.

The partnership is expected to generate synergies by combining IMR’s global supply chain strengths with SEIL’s established manufacturing capabilities. IMR plans to utilise its international sourcing network for key raw materials including metallurgical coke, coking coal, non-coking coal, and ferrous scrap to improve SEIL’s cost efficiency and supply security.

Additionally, IMR intends to support international marketing of SEIL’s finished steel products, further enhancing its global reach.

Mr. Anirudh Misra, Group CEO and Chairman of IMR, expressed optimism about the Indian steel sector, stating that the strategic investment represents a significant step in IMR’s forward integration strategy. He highlighted that the combination of IMR’s global sourcing capabilities and SEIL’s manufacturing platform offers strong potential to accelerate growth and improve operational efficiency.

Mr. Bandi Suresh Kumar, Joint Managing Director of SEIL, noted that as a port-based integrated steel plant, the company is well positioned to capitalise on India’s growing steel demand. He added that IMR’s global scale and expertise are expected to create enhanced stakeholder value.

About Steel Exchange India

Steel Exchange India Ltd, incorporated in 1999 and part of the Vizag Profiles Group, operates an integrated steel plant near Visakhapatnam, Andhra Pradesh. The company manufactures TMT rebars under the brand ‘SIMHADRI TMT’. Its facility has capacities of 220,000 tonnes per annum (TPA) of sponge iron, 362,000 TPA of billets, 357,000 TPA of TMT/rebars, along with a captive 60 MW power plant.

IMR Group operates across more than 17 countries and is engaged in mineral resource trading, mining operations in Indonesia, South Africa, Mexico, and India, and downstream steel production. Its Indian arm, ICPPL, supplies critical raw materials to the steel, cement, and power sectors.

The company has a market capitalisation of over Rs 1,042.68 crore. The stock price has delivered over 51.45 per cent returns in the last 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.