ARTICLE AD BOX
Visakhapatnam: Steel Exchange of India Limited (SEIL) has now taken another step towards addressing its debt, with the payment of its ₹15 crore term loan, the company said in a press release. With this, the prominent South India-based steel manufacturer has officially achieved 25% of its long term debt reduction target, closer to its ultimate goal of becoming completely debt free.
SEIL, the company behind the ‘Simhadri TMT’ rebars, has had to face severe financial stress due to reasons beyond its control. SEIL had undertaken massive capital expenditures to upgrade its facility in Vizianagaram into a full fledged integrated stell plant. For this, it issued high interest Non Convertible Debentures and took on extensive term loans to finance this.
A sector wide slowdown around Financial Year 2023 forced the comapny to bear significant losses due to high interest costs associated with its NCDs. This led to its interest coverage ratio dropping below 1.0x meaning it wasn’t generating enough core profits to cover its interest obligations. With the market flooding with cheap Chinese imports and raw material price fluctuations, SEIL faced multitude of challenges at once.
With most of this behind them, SEIL is now looking to address the debt it has incurred, with the company addressing almost 25% of its debt by October 2025 with another ₹258 crore outstanding as on June 18, 2026.
“This step reflects our continued focus on disciplined financial management and strengthening our capital structure. Our approach remains centered on improving efficiency, optimizing capital allocation, and creating a more resilient and scalable platform to support long-term growth’ the company said.
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