SAS.A.L. Steel532604Postal ballot notice

Board approves postal ballot for five material related party transactions

S.A.L. Steel's board met on 16 October 2026 and approved a Postal Ballot Notice.

By ScoutQuest · Fri 16 Oct 2026, 2:59 PM IST · 2 min read

Related Party Transactions for vote

five material Related Party Transactions

Unsecured short-term loan from Lawrence Merchants

Rs. 228.67 Crore

Aggregate regularised cap with Sree Metaliks

Rs. 174.62 Crore with holding company Sree Metaliks

What the board approved

• The board of S.A.L. Steel met on Friday, 16 October 2026 and approved the text, disclosures and dispatch of a Postal Ballot Notice.
• Shareholders will vote, through independent Ordinary Resolutions, on five material Related Party Transactions (RPTs).
• These are approval items, so the outcome depends on the postal ballot result rather than being effective immediately.

Post-facto ratifications

• Item 1: regularisation of an unsecured short-term loan facility availed from Lawrence Merchants Private Limited (an NBFC entity) and interest thereon, effective 04 September 2025 to 31 March 2026, for Rs. 228.67 Crore.
• Item 2: regularisation of purchase of raw material, sale and unsecured loan facility availed from Sree Metaliks Limited, the holding company, effective 01 April 2026 up to the conclusion of the postal ballot voting period on 18 November 2026. Aggregate regularised cap: Rs. 174.62 Crore, comprising Rs. 129.62 Crore historically utilised and an additional contingent operational buffer of up to Rs. 45 Crore.

Forward-looking one-year limits (20 November 2026 to 19 November 2027)

• With Sree Metaliks Limited: purchases of raw materials up to Rs. 300 Cr, sales of finished goods up to Rs. 50 Cr, corporate guarantees provided by Sree Metaliks Limited up to Rs. 500 Cr, and loan availments from Sree Metaliks Limited including interest up to Rs. 200 Cr.
• With Lawrence Merchants Private Limited: an unsecured loan availment credit line including interest, up to a maximum cap of Rs. 200 Crore.
• With Elite Metaliks Private Limited: purchases of raw materials up to Rs. 100 Cr and sales of finished goods up to Rs. 50 Cr.

What the company says about the rationale

• Sree Metaliks Limited now controls a 57.51% equity stake, described as a recent strategic corporate takeover.
• The company states the capital infused through the past loan lines was used to clear backlogs for maintenance of old plant machinery and factory modernisation.
• The omnibus trade contracts are described as securing long-term supply of raw iron ore, the key input for the company's Sponge Iron manufacturing plants.
• All transactions have been vetted as being on an arm's length basis and in the ordinary course of business.

How voting works

• The Postal Ballot Notice will be dispatched electronically to eligible members on 19 October 2026.
• Remote e-voting opens 20 October 2026 at 9:00 AM (IST) and closes 18 November 2026 at 5:00 PM (IST).
• Final results along with the Scrutinizer's Report will be declared on or before 20 November 2026.
• CS Kamlesh M. Shah of M/s. Kamlesh M. Shah & Co. has been appointed to conduct the electronic voting process.

What a shareholder can take away

• The resolutions place the exact rupee ceilings on the company's related-party exposure for the coming year, so these caps are the figures to track.
• Both the past transactions and the future limits are subject to the same postal ballot.

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