Evonith Steel has raised ₹2,000 crore through a mix of debt refinancing and non-convertible debentures (NCDs), aiming to strengthen its balance sheet while advancing ongoing and upcoming expansion projects.
The capital raise includes ₹1,750 crore through fresh debt refinancing and an additional ₹250 crore via NCDs, primarily subscribed by institutional investors. The refinancing exercise is designed to reduce borrowing costs, extend repayment tenures, and improve overall financial flexibility.
A significant portion of the funds will be used to repay existing debt, helping the company optimise its capital structure. At the same time, the remaining capital is earmarked to complete ongoing projects and support expansion across downstream steel operations, including capacity enhancement and value-added product development.
The transaction was underwritten and syndicated by leading financial institutions including Standard Chartered and JPMorgan Chase, with additional participation from IDFC First Bank. The NCD issuance saw investment from HDFC Mutual Fund, with advisory support from JP Morgan India.
Company leadership highlighted that the refinancing aligns with its long-term strategy of building a financially resilient and growth-oriented business, enabling continued investment in operational efficiency and expansion. Lower financing costs and improved liquidity are expected to provide a stronger foundation for scaling operations in the coming years.
Evonith Steel has reported improved operational performance since its acquisition phase, including higher production output, better project execution, and improved profitability, positioning it for its next phase of growth.
The company is now preparing to undertake new capital expenditure programmes, with a focus on expanding downstream capabilities and increasing overall production capacity across the steel value chain.
This fundraise reflects a broader trend in the steel sector, where companies are actively restructuring their balance sheets while investing in capacity expansion and value-added product segments to remain competitive in a changing market environment.
