Consequent to above, the company has also agreed to avail a secured inter corporate deposit of Rs 125 crore from AIA which will be used by the company to repay its loan / for working capital requirements, the firm stated.

SAL Steel is engaged in the business of manufacturing sponge iron, ferro Aaloys and power and the products manufactured by the company are sold in the domestic market as well as international market.

AIA Engineering is primarily involved in the manufacturing of High Chrome Mill Internals.

Shares of SAL Steel hit an upper circuit of 5% at Rs 11.34 while AIA Engineering rose 0.93% to Rs 2,529.40 on the BSE