Aanchal Ispat Limited is an Indian steel manufacturer and trader currently undergoing a comprehensive strategic and financial transformation. Following its emergence from the **Corporate Insolvency Resolution Process (CIRP)** in **March 2025**, the company is transitioning from a legacy steel rolling mill into a diversified industrial entity. Under new leadership and a court-approved resolution plan, the company is rebranding as **Montera Limited** and shifting its corporate base from **Kolkata** to **Mumbai**. --- ### **Insolvency Resolution and Capital Restructuring** The company’s recent history is defined by its successful exit from insolvency. Following a default in **October 2022**, the **NCLT Kolkata Bench** approved a resolution plan submitted by **Mr. Mukesh Goel** (the Successful Resolution Applicant) on **March 27, 2025**. **Key Restructuring Milestones:** * **Debt Settlement:** Total claims were settled at **₹54.50 crore**, including **₹47.25 crore** to Karur Vysya Bank and **₹1.00 crore** to operational creditors. This resulted in a recognized net gain of **₹39.38 crore** from liability settlements. * **Capital Reduction:** To reset the balance sheet, the paid-up share capital was reduced from **₹20.85 crore** to **₹2.83 crore**. The face value of shares was reduced to **₹0.10** and subsequently consolidated back to **₹10.00**. * **Equity Infusion:** The new promoter infused **₹2.69 crore** through the issuance of **26,90,723 fresh equity shares**. * **Relisting:** Shares resumed trading on the **BSE (XT Group)** on **December 17, 2025**, following a suspension period. **Post-Restructuring Shareholding Pattern (as of August 2025):** | Shareholder Category | No. of Shares | Shareholding % | | :--- | :--- | :--- | | **Promoter & Promoter Group** | **2,690,723** | **94.96%** | | **Public Shareholders** | **142,608** | **5.04%** | | **Total** | **2,833,331** | **100.00%** | --- ### **Core Manufacturing and Operational Footprint** The company operates an **ISO 9001:2008** certified integrated steel rolling mill in **Howrah, West Bengal**, catering exclusively to the domestic Indian market. * **Current Product Mix:** * **Mild Steel (MS) TMT Re-bars:** Primary reinforcement steel for the construction sector. * **Structural Steel:** Angles, Channels, and **MS Rounds**. * **Trading & Job Work:** Dealing in **MS Billets**, **Cement**, **Clinker**, and providing third-party manufacturing services. * **Operational Synergy:** The company maintains a high dependency on its sister concern, **Maina International Ltd**, for related-party transactions to optimize capacity. In FY25, these transactions accounted for **76.08% of purchases** and **74.68% of sales**. * **Efficiency Initiatives:** Recent upgrades include re-casting re-heating furnace linings for higher heat yield, installing **Automatic Power Factor Correction** equipment, and implementing **Rainwater Harvesting** to reduce groundwater extraction costs. --- ### **Strategic Diversification: The "Montera" Pivot** In **January 2026**, the Board approved a significant expansion of the company’s **Memorandum of Association (MoA)** to pivot toward high-growth technical and infrastructure sectors: | New Business Vertical | Target Products & Services | | :--- | :--- | | **Electrical Infrastructure** | Insulating resins, **power cable splicing**, fireproofing tapes, connectors, and crimping tools. | | **Railway Components** | Manufacturing and dealing in **carriage and wagon components**, hoists, coaches, and **locomotive spares**. | | **Engineering & EPC** | Consultancy, erection, and commissioning for steel, rubber, and electrical plants; **civil and metallurgical engineering**. | | **Financial Services** | New authorizations to grant loans/guarantees (up to **₹60 Cr**) and make strategic investments (up to **₹80 Cr**). | --- ### **Financial Performance Summary** While revenues have shown recovery, the company remains in a net loss position due to the heavy cleaning of its balance sheet during the insolvency process. | Metric (INR Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Revenue from Operations** | **151.30** | **109.39** | **194.54** | | **EBIDTA** | **(4.70)** | **(3.40)** | **(22.18)** | | **Post-Tax Loss (PAT)** | **(13.40)** | **(6.25)** | **(23.46)** | **Balance Sheet Adjustments (FY25):** * **Write-offs:** **₹50.87 crore** was written off for non-recoverable receivables and advances. * **Inventory Revaluation:** Inventories were marked down to a net realizable value of **₹9.62 crore** due to obsolescence. * **Liquidation Value:** Registered valuers pegged the company’s liquidation value at **₹24.36 crore**. --- ### **Critical Risk Factors and Implementation Hurdles** Investors should note that the company’s "Going Concern" status is contingent on the successful execution of the NCLT plan, which faces immediate challenges. * **Liquidity and Payment Delays:** The company missed its first liability installment due on **September 23, 2025**. Management cited delays in **NCLAT** proceedings regarding personal guarantees, which hampered fund-raising from **Qualified Institutional Buyers (QIBs)**. An extension request is pending with a hearing set for **February 16, 2026**. * **Regulatory Surveillance:** Due to the public shareholding falling below **25%**, the stock is under **'IBC / IRP Stage-I'** surveillance. The company is also addressing **BSE penalties** of **₹6.82 lakhs** for disclosure delays. * **Asset Quality Concerns:** **₹39.68 crore** of trade receivables are older than **2 years** without confirmation. Furthermore, management has not yet conducted impairment testing for **Property, Plant and Equipment (PPE)** as per **Ind AS 36**. * **Market & Macro Risks:** The company is highly sensitive to **coking coal** price volatility and competition from cheap steel imports. Long-term demand faces threats from **technological substitution** (aluminum/composites) and the need for capital-intensive **Green Steel** transitions. --- ### **Future Outlook** The company aims to align with the **National Steel Policy 2017** (targeting **300 MMT** capacity by 2030) and the **PLI Scheme** for specialty steel. By integrating **Industry 4.0** (AI and IoT) and diversifying into **Railway and Electrical components**, the management seeks to move away from low-margin commodity steel into high-value engineering segments. Success depends entirely on stabilizing the capital structure and meeting the deferred payment obligations under the NCLT resolution plan.