Shyam Metalics IPO

Shyam Metalics IPO-Shyam Metalics and Energy Limited

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Shyam Metalics IPO will open for subscription from 14 June 2021. the company aims for an issue size of ₹909.00 Cr crores through this IPO.

Also read: IPO List 2021: a complete list of IPOs in 2021

Shyam Metalics and Energy Limited

Incorporated in 2002, Shyam Metalics and Energy Limited (SMEL) is India’s leading integrated metal producer company. The company is primarily engaged in the production of long steel products such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferroalloys. As of February 2021, it is among India’s largest producers of ferroalloys in terms of installed capacity and the fourth-largest player in the sponge iron industry.

The company serves institutional customers and end-users. Jindal Stainless Limited, Rimjhim Ispat Limit are some of its domestic clients whereas Norecom DMCC, Norecom Limited, POSCO International Corporation, World Metals & Alloys, Traxys North America LLC, JM Global Resources, Vijayshri Steel Pvt Ltd, etc. are the international clients. The company has a partnership with 42 distributors to offer its products across 13 states and 1 union territory.

Currently, the firm has 3 manufacturing plants located in Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. As of Dec 31, 2020, its manufacturing units have an aggregated installed metal capacity of 5.71 million tonnes per annum. The company is looking to expand its capacity from 5.71 MTPA to 11.60 NTPA by 2025. The Sambalpur and Jamuria plants are integrated steel manufacturing plants that produce captive railway sidings, captive power plants, iron pellet, sponge iron, billet, Thermomechanically treated (TMT), wire rod, and structural mills, and ferroalloys plants. Further, its manufacturing facility at Mangalpur comprises sponge iron and ferroalloy plants, and a captive power plant.

Objects of the Issue

  • Repayment and/or pre-payment of company and its subsidiary (SSPL)’s debt fully or partially.
  • General corporate purposes.

Competitive Strengths

  • Leading integrated metal producer in India.
  • Strategically located manufacturing plants with a robust infrastructure.
  • Diversified product portfolio.
  • Strong financial performance and distribution network.

Basic details about the company

Full nameShyam Metalics and Energy Limited
SectorIron & Steel
IndustrySteel&Iron products

Dates to remember

IPO Open14 June 2021
IPO Close16 June 2021
Basis of Allotment21 June 2021
Refunds date22 June 2021
Credit to Demat Account23 June 2021
 Listing Date24 June 2021

IPO details

Issue typeBook Building
IPO issue size₹909 Crores
Fresh Issue₹657 Crores
Offer for sale₹252 Crores
Face value₹10 Per Equity Share
Price band₹303 to ₹306 Per Share
Retail Allocation35%
Employee Discount₹15 Per Shares
Lot size45 Shares
Minimum application1 Lot45 Shares
Maximum application14 Lots-630 Shares
Minimum application amount₹13,770
Maximum application amount₹192,780
Listing ExchangeBSE & NSE

Category-wise Break up

Anchor: 88,21,765 Shares = ₹269.95 Crores
QIB: 58,81,176 Shares = ₹179.96 Crores
NII: 44,10,882 Shares = ₹134.97 Crores
RII: 1,02,92.059 Shares = ₹314.94 Crores (Lot size: 45 = 2,28,712 Forms)
Employee: 3,00,000 Shares = ₹8.73 Crores (Discount @ ₹15)
Total Issue: 2,97,05,882 Shares = ₹908.55 Crores

Financial summary

ParticularsFor the year/period ended (₹ in million)
Total Assets51,051.4752,037.8840,524.3434,706.28
Total Revenue39,956.3243,953.0246,845.6039,203.99
Profit After Tax4,563.213,403.296,367.835,280.39

FY2019FY20209M FY2021
Comprehensive income521.9641.8340.8460.2
Margin (%)13.313.77.811.5

Valuation of Shyam Metalics (as of FY2020)

Earnings Per Share (EPS)₹14.57
Price/Earnings (PE ratio)20.8 – 21.0
Return on Net Worth (RONW)12.04%
Net Asset Value (NAV)₹120.97 per share

Company Promoters

  • Mahabir Prasad Agarwal
  • Brij Bhushan Agarwal
  • Sanjay Kumar Agarwal
  • Subham Capital Private Limited
  • Subham Buildwell Private Limited
  • Narantak Dealcomm Limited
  • Kalpataru Housefin & Trading Private Limited
  • Dorite Tracon Private Limited
  • Toplight Mercantiles Private Limited

Lead Managers

  • Axis Capital Limited
  • ICICI Securities Limited
  • IIFL Holdings Limited
  • JM Financial Consultants Private Limited
  • SBI Capital Markets Limited

Registrar of Shyam Metalics IPO

KFin Technologies Private Limited
Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222 
 +91 40 2343 1551

Shyam Metalics Contact Details

Shyam Metalics and Energy Limited
Trinity Tower, 7th Floor,
83, Topsia Road,
Kolkata – 700046, West Bengal
Phone: +91 33 4016 4000

Shyam Metalics IPO Allotment Status

Shyam Metalics IPO allotment status will be available on KFin Technologies’ website.

Click on this link to get allotment status.

Final thoughts

Shyam Metalics IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make a wise decision.

Happy Investing

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