1. Sree Metaliks takeover and capital infusion - Sree Metaliks completed its acquisition of a 57.51% controlling stake by February 2026 through a preferential allotment (₹99 crore), secondary purchase, and open offer, with all warrants now converted. The new promoter brings captive iron-ore mines, a ₹2538-crore topline and ₹292-crore PAT (FY25), and stated intent to improve operational efficiencies - putting a far larger, profitable parent behind a company that had ₹14.7 crore of EBITDA and ₹349 crore of debt.
2. ₹150-crore working-capital facility from Yes Bank - A working-capital demand loan of ₹150 crore was sanctioned by Yes Bank on 25 March 2026, secured by current and movable fixed assets and guaranteed by the new promoter and Sree Metaliks. For a business whose annual revenue had shrunk to ₹208 crore, this facility removes the liquidity choke point that likely caused the sharp volume decline.
3. ₹50-crore term loan to retire high-cost ICD - A five-year term loan of ₹50 crore from Axis Finance, sanctioned 26 May 2026, is earmarked to repay the inter-corporate deposit from AIA Engineering. Replacing ICD funding with a structured term loan at a disclosed rate lowers financing cost and extends maturity, directly improving cash flow.
4. Pellet plant backward integration - ₹30 crore of the preferential-issue proceeds is allocated to set up a pellet plant (₹10 crore in FY26, ₹20 crore in FY27) to reduce dependence on external suppliers and improve raw-material efficiency. Captive pellets lower the cost of the main sponge-iron input, widening margins on the company's largest volume product.
5. Furnace refurbishment and plant upgrade - ₹38 crore of the preferential proceeds is directed to refurbish furnaces (₹20 crore) and modernise plant infrastructure (₹18 crore), spread across FY26 and FY27. Higher production capacity and energy efficiency from upgraded assets raise output without requiring a new greenfield build.
6. Sponge iron volume recovery - Sponge-iron production rose to 131,281 MT in FY25 from 129,696 MT, with sales moving to 131,619 MT. With working capital now funded and furnaces being refurbished, the company's largest segment has a clear path to rebuild volumes from a base that had already turned up before the liquidity squeeze.