Shyam Metallics receives SEBI approval for Rs. 1,107Cr IPO

shyam metallics ipo

Kolkata-based Shyam Metallics is looking to launch an IPO worth INR 1107 crore. The IPO will include a fresh issuance of equity shares up to INR 657 crore and an offer for sale by promoters amounting to INR 450 crores.

The company had earlier filed the draft red herring prospectus (DRHP) with the market regulator in February 2021. They plan to use the net proceeds from this round for repayment of INR 470 crore of its debt and that of its subsidiary, Shyam SEL, and Power, and other general business purposes.

The share held for qualified institutional buyers will be up to 50% of the offer, 35% will be maintained for the retail Investors, while non-institutional investors will have 15% of the portion reserved.

The company has been EBITA positive since its inception in 2005 and markets intermediate and final products across the steel value chain serving institutional and end-use customers via 42 distributors, brokers across 13 states, and 1 union territory.

At present, the company runs three manufacturing plants that are situated at Sambalpur in Odisha and Jamuria and Mangalpur in West Bengal. The company sells Thermo mechanically treated bars and structural products under the SEL brand name and as of Dec 31, 2020, had a combined metal capacity of its 3 manufacturing plants at 5.71 Million tonnes per annum which can increase to 11.60 Million MTPA as per the company’s expansion plan by FY2025. 

It is considered to be the fourth-largest sponge iron player (based on capacity) in the industry when compared with its Indian counterparts.

Moreover, the company is planning to extend into segments like ductile iron pipes, pig iron, and Aluminum foil. It is looking to commission an Aluminum foil rolling plant at Pakuria, West Bengal with a capacity of 0.04 MTPA by FY2022.

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