The Kolkata-based long steel products and ferroalloy-focused company, Shyam Metallics is planning an IPO of INR 1107 crore. The IPO will comprise of 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) I with SEBI in February 2021. They intend to utilize the proceeds from this round of issue for repayment of INR 470 crore of its debt and that of its subsidiary, Shyam SEL, and Power, and for other general corporate purposes.
The portion reserved for qualified institutional buyers will be up to 50% of the offer, 35% will be reserved for the retail Investors, while non-institutional investors will have 15% of the portion reserved.
has been EBITA positive since its operations in 2005 and sells intermediate and final products across the steel value chain catering to institutional and end-use customers through 42 distributors, brokers across 13 states, and 1 union territory.
The company currently operates three manufacturing plants that are located 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 an aggregate metal capacity of its 3 manufacturing plants at 5.71 Million tonnes per annum which stand to increase to 11.60 Million MTPA as per the company’s expansion plan by FY2025. It is speculated to be the fourth-largest sponge iron player (based on capacity) in the industry when compared with its Indian contemporaries.
Additionally, the company is looking to expand 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.