Hexa Tradex Limited is a specialized trading and investment vehicle within the **PR Jindal Group**. The company operates a dual-model business focusing on the wholesale distribution of industrial goods and the management of a significant strategic investment portfolio. Currently, the entity is in the final stages of a **voluntary delisting** process from the **BSE** and **NSE**, signaling a transition toward private ownership and group-level consolidation. --- ### **Core Business Segments and Service Model** The company’s operations are bifurcated into two primary reportable segments, both focused exclusively on the **Indian market**: #### **1. Trading and Technical Advisory** Hexa Tradex acts as a dealer, importer, exporter, and broker on a **wholesale, cash-and-carry basis**. * **Product Portfolio:** Includes chemicals, petrochemicals, iron and steel (ferrous/non-ferrous), stainless and special steels, minerals, auto parts, capital goods, and general merchandise (groceries, electronics, and apparel). * **Value-Added Services:** Beyond simple distribution, the company provides technical support, specifically one-to-one consumer education regarding the **jointing and commissioning process of pipes** to ensure safety and industrial compliance. * **Customer Concentration:** Revenue is highly concentrated, with **two major customers** each contributing more than **10%** of total turnover. #### **2. Investment and Finance** Managed primarily through its material subsidiary, **Hexa Securities and Finance Company Limited (HSFCL)**, an **RBI-registered NBFC**. * **Strategic Holdings:** The company’s balance sheet is anchored by a massive holding of **1,45,43,261 equity shares** in **Jindal Stainless Limited (JSL)**. * **Consultancy:** The segment also provides strategic financial consultancy and manages the group's inter-corporate investments. --- ### **Financial Performance and Asset Valuation** Hexa Tradex demonstrated a significant financial turnaround in **FY 2024-25**, moving from a net loss to profitability, driven by a surge in operational income and massive appreciation in investment values. | Metric (Standalone) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income from Operations** | **₹6.77 crore** | **₹2.27 lakhs** | **₹4.77 lakhs** | | **Net Profit / (Loss) After Tax** | **₹1.88 crore** | **(₹2.59 crore)** | **(₹2.82 crore)** | | **Other Comprehensive Income (OCI)** | **₹836.87 crore** | **₹967.75 crore** | *Not Disclosed* | | **Net Worth** | **₹3,751.21 crore** | **₹2,912.47 crore** | **₹1,947.30 crore** | **Key Financial Observations:** * **Net Worth Growth:** Increased by **28.8%** year-on-year in FY25, primarily due to **OCI** gains from the fair valuation of its equity holdings. * **Liquidity:** The company relies on a mix of borrowings and operating cash flows. Standalone interest-bearing borrowings stood at **₹846.44 lakhs** (all >1 year maturity) as of March 2024. * **Subsidiary Scale:** As of September 30, 2024, its material subsidiary reported total assets of **₹1,384.09 crore**. --- ### **Strategic Realignment and Delisting Status** The company is undergoing a structural transformation to foster operational synergies within the **PR Jindal Group**. * **Delisting Progress:** The voluntary delisting process initiated by the Acquirers (**Siddeshwari Tradex Pvt Ltd, Innox Global Multiventures, Opelina Sustainable Services, and JSL Limited**) is substantially complete. * **Promoter Control:** Following the acquisition of **29.01%** of public equity, the Promoter Group holding has reached **92.13%**. * **Pending Approvals:** Final applications for delisting were filed with **BSE** and **NSE** in **July 2022**. As of **February 2026**, these applications remain **pending for final approval**. * **Leadership Transition:** In **January 2026**, the CEO/CFO transitioned to a group-level role to further drive synergies across the PR Jindal Group entities. --- ### **Growth Drivers and Macroeconomic Positioning** Hexa Tradex is positioning its trading desk to capitalize on several Indian government initiatives and global shifts: * **Infrastructure & Energy:** Leveraging the **Jal Jeevan Mission** for pipe-related trading and the shift toward **Electric Vehicles (EVs)** and **Renewable Energy** for specialized alloy distribution. * **Industrial Policy:** Utilizing the **'Make in India'** and **Production Linked Incentive (PLI)** schemes to expand local sourcing and distribution. * **Diversification:** Strategic entry into high-margin sectors including **healthcare (OTC drugs)**, **beauty products**, and **packaged consumer goods**. * **Investment Realignment:** The company recently extended the redemption tenure of **54,83,547** 9% Preference Shares in **Colorado Trading Company** from **7 to 20 years** (valued at **₹54.84 Crores**), optimizing long-term capital allocation. --- ### **Regulatory Landscape and Compliance History** The company has navigated a complex regulatory environment involving **SEBI** and the stock exchanges: * **SEBI Show Cause Notices (SCN):** * **March 2024:** An SCN was issued alleging violations of the **SEBI Act**. A **settlement application** is currently pending. * **October 2023:** An SCN regarding delisting and LODR regulations resulted in a penalty (issued **June 2024**), which the company has since **paid**. * **Exchange Warnings:** In **October 2025**, **NSE** and **BSE** issued warnings for non-compliance with **LODR Regulations 18(1)(d) and 20(3)**, after committee chairpersons failed to attend the **2024 AGM**. * **Related Party Transactions (RPT):** Shareholders have approved significant RPTs for **FY 2025-26**, including contracts with **Siddeshwari Tradex Pvt Ltd (up to ₹200 crore)** and **Jindal Saw Limited (up to ₹50 crore)**. --- ### **Risk Management Framework** Hexa Tradex maintains a board-approved framework to mitigate operational and financial volatility: | Risk Category | Mitigation & Status | | :--- | :--- | | **Market & Commodity** | No direct exposure to commodity price risk; no current foreign exchange hedging. | | **Credit Risk** | Managed via strict counterparty evaluation; receivables are currently not considered credit-impaired. | | **Asset Pledge** | **1,45,43,261 JSL shares** are pledged as security for financial assistance to JSL. While some shares were released, the formal charge with the **ROC** remains pending. | | **Taxation** | A disputed income tax liability of **₹2.52 crore** exists, for which no provision has been made. | | **Geopolitical** | Exposure to supply chain disruptions and energy price volatility stemming from the **Russia-Ukraine conflict** and **U.S.-China trade disputes**. | **Note:** The company has **not obtained a credit rating** from any external agency. As of March 31, 2025, **99.48%** of the company's shares are held in **dematerialized form**.