By financing MSSTL’s new manufacturing unit, Sunshine Capital is supporting a key player in the steel tube industry and solidifying its presence as a major financier in the manufacturing sector.
Stock Market Update: Sunshine Capital Ltd. a prominent Non-Banking Financial Company (NBFC), has announced that it as sanctioned an amount of Rs 1964 million to Man Stainless Steel Tubes Limited (MSSTL) to support the development of a state-of-the-art manufacturing unit in Kathua, Jammu & Kashmir. This ambitious project, which involves the production of Non-API Electric Resistance Welded (ERW) Carbon Steel Pipes, marks a significant expansion in the manufacturing sector, with a planned capacity of 250,000 metric tons per annum.
By financing MSSTL’s new manufacturing unit, Sunshine Capital is supporting a key player in the steel tube industry and solidifying its presence as a major financier in the manufacturing sector. This move underscores Sunshine Capital’s commitment to leveraging emerging opportunities within the industrial landscape.
The total cost of the manufacturing unit is estimated at ₹2807 Mn. Sunshine Capital Ltd. has structured the financing through a combination of a Rupee Term Loan (RTL) of up to ₹1964.9 Mn and a Capex Letter of Credit (LC) amounting to ₹1450Mn, acting as a sublimit of the RTL facility. The financial facility will cover a substantial portion of the capital expenditure required for the project, which is expected to be completed by April 2025. The loan term is set for nine years, including a 12-month construction period and a 12-month repayment moratorium, providing MSSTL with the necessary financial flexibility to ensure the successful completion of the project.
By financing a large-scale manufacturing project, Sunshine Capital enhances its portfolio, showcasing its ability to support high-value industrial developments. Participating in financing a state-of-the-art manufacturing unit elevates Sunshine Capital’s market standing as a leading NBFC capable of supporting large-scale projects. This involvement not only builds its credibility but also positions the company as a trusted partner for other high-growth ventures.
The partnership with MSSTL opens the door for future collaborations in the manufacturing sector. As MSSTL grows and possibly expands further, Sunshine Capital could continue to play a crucial role in financing its future projects, thereby securing long-term business relationships. With this announcement, investors are likely to view Sunshine Capital as a proactive and growth-oriented company, potentially driving up investor interest and positively impacting the company’s stock performance.
Established in 1994, Sunshine Capital Limited has grown to become a prominent NBFC.
Incorporated on 11th July 1994 under the Companies Act, 1956, the Company is a Non-
Deposit Taking Non-Banking Financial Company (ND-NBFC), registered and regulated by
the Reserve Bank of India (RBI) with Registration No. B-14.01266 issued on 25th September
1998 in New Delhi.
Being ISO 9001:2015 certified, Sunshine Capital Limited is committed to enhancing Customer satisfaction through the effective application of its quality management system, Which includes processes for continual improvement, ensuring conformity to customer and Applicable statutory and regulatory requirements. The company emphasizes robust business Practices, transparent policies, and a strong customer-centric approach. Sunshine Capital Limited aspires to create value and balanced growth for all its stakeholders while keeping its Clients at the centre of its business efforts.