In a significant financial maneuver, Evonith Steel, a prominent player in the Indian steel industry, has secured ₹1,700 crore in funding from a group of leading banks and financial institutions. This capital infusion is crucial for the company as it seeks to repay its existing creditors and streamline its financial obligations. The funding comes at a pivotal time for Evonith Steel, which has undergone a rebranding from its previous identity as Uttam Galva Metallics and Uttam Value Steels.
The funding round saw participation from several notable financial institutions:
- Standard Chartered Bank: A leading international bank with a strong presence in Asia, Standard Chartered has a history of supporting businesses in various sectors, including steel.
- JP Morgan: Renowned for its global investment banking and financial services, JP Morgan has played a crucial role in facilitating large-scale funding for companies.
- IndusInd Bank: A prominent private sector bank in India, IndusInd Bank has been actively involved in providing financial solutions to various industries, including manufacturing and infrastructure.
- Catholic Syrian Bank: With a focus on retail and corporate banking, Catholic Syrian Bank has also stepped in to support Evonith Steel's financial restructuring efforts.
The primary objective of this ₹1,700 crore funding is to repay existing creditors, which include a mix of Indian banks and international financial entities. Notably, AB Carval, which had subscribed to non-convertible debentures issued by Evonith Steel, is among the creditors being addressed by this capital raise.
By repaying these debts, Evonith Steel aims to improve its balance sheet and reduce its financial liabilities. This move is expected to enhance the company's creditworthiness and position it for future growth opportunities within the competitive steel market.
