IMR Group (IMR) will invest Rs three billion (bn) in Steel Exchange India Limited (SEIL) through subscription to share warrants, while SEIL plans to raise Rs three point five bn via a preferential issue. The investment will be routed through IMR’s Indian entities India Coke and Power Private Limited (ICPPL) and IMR Steel Private Limited (ISPL). The capital infusion is intended to strengthen SEIL’s operations, optimise its debt structure and position the company for accelerated growth as part of IMR’s forward integration strategy in India.

IMR is headquartered in Switzerland and has operations in over 17 countries with a fully integrated metals platform spanning mineral trading, mining and downstream steel production. The group will leverage global sourcing capabilities for critical raw materials including metallurgical coke, coking coal, non-coking coal and ferrous scrap to enhance SEIL’s supply chain security and operational efficiency. The investors expect that access to imported inputs and international marketing channels will improve competitiveness and market reach for SEIL products.

Company executives indicated that the investment will support capacity utilisation, fund working capital needs and enable targeted capital expenditure to expand forward integration. The funding is also expected to facilitate optimisation of the existing debt mix and provide balance sheet flexibility for strategic initiatives. IMR’s involvement will include support for international marketing of SEIL’s finished products to create additional value and to help the company capitalise on rising domestic steel demand.

SEIL, a flagship company of the Vizag Profiles Group, operates a port-based integrated steel plant near Visakhapatnam in Andhra Pradesh. The plant has capacity to produce 220,000 TPA of sponge iron, 362,000 TPA of billets, 357,000 TPA of TMT rebars and 60 megawatt (MW) of power, and manufactures TMT rebars under the Simhadri TMT brand. Management noted that the strategic location and the partnership with IMR are expected to support supply chain efficiencies and customer reach both domestically and overseas.