Synopsis:
Promoters of S.A.L. Steel Limited increased their stake to 70.98% via exclusive share allotment, reducing public holding and strengthening control amid revenue growth but continuing losses.
Known for producing steel and ferro alloys, this company has seen a significant promoter action that could impact its market dynamics. In a recent development, promoters increased their stake sharply. This has led to substant reduction in public and institutional shareholding a move that may influence investor sentiment and future stock performance
S.A.L Steel Limited’s stock, with a market capitalisation of Rs. 227 crores, fell to Rs. 26.57, hitting the intraday low of up to 2.8 percent from its previous closing price of Rs. 27.57. Furthermore, the stock over the past year has given a negative return of 0.67 percent.
What Happened?
The shareholding pattern is changing mainly because new shares are being issued. Before the issue, promoters held around half (50.56%) of the company’s shares, and the public owned almost the same amount (49.44%). After allotting 5.5 crore new shares, the promoter’s stake rises sharply to 70.98% of the company, while the public shareholding falls to 29.02%.
The main reason for this shift is the allotment of extra shares to the promoters. Since only promoters are getting the new shares, their hold over the company strengthens. This means they gain more voting power and control, as their percentage ownership goes up while the public’s share shrinks.
The end result is that promoter control of the company becomes even stronger after the share issue, while public investors have a much smaller piece of the company.
New Shareholding Structure
After the new shares are issued, promoter shareholding rises to 10,27,59,495 shares, which is 70.98% of the total. Public shareholding is now 4,20,07,205 shares, making up 29.02% of the company.
Within the public shareholding, individuals own 3,66,05,525 shares (25.29%), body corporate owns 16,04,270 shares (1.11%), and others, including NRIs, own 36,67,373 shares (2.53%).
Foreign institutions hold only 1,30,037 shares (0.09%) after the issue. The overall number of shares increases to 14,47,66,700 after the allotment, meaning the company’s size grows and ownership percentages shift strongly toward the promoters.
Also read: Debt free stocks trading at a discount of up to 50% to keep an eye on
Q1 Financial Highlight
The company reported Q1FY26 revenue of Rs. 127.68 crore, up 15.35% YoY from Rs. 110.71 crore and 9.17% QoQ from Rs. 116.94 crore. Despite healthy top-line growth, profitability weakened sharply, with a loss of Rs. 9.67 crore compared to a Rs. 0.16 crore profit in Q1FY25 and a Rs. 5.97 crore loss in Q4FY25.
The YoY decline in profit reflects margin pressures and increased costs, while the QoQ widening of losses signals operational or expense challenges offsetting revenue gains. Management focus on cost efficiencies will be key to aligning profit trends with revenue growth.
Written By Fazal Ul Vahab C H
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