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 name | Shyam Metalics and Energy Limited |
| Sector | Iron & Steel |
| Industry | Steel&Iron products |
| Company Website | www.shyammetalics.com |
Dates to remember
| IPO Open | 14 June 2021 |
| IPO Close | 16 June 2021 |
| Basis of Allotment | 21 June 2021 |
| Refunds date | 22 June 2021 |
| Credit to Demat Account | 23 June 2021 |
| Listing Date | 24 June 2021 |
IPO details
| Issue type | Book 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 Allocation | 35% |
| Employee Discount | ₹15 Per Shares |
| Lot size | 45 Shares |
| Minimum application | 1 Lot–45 Shares |
| Maximum application | 14 Lots-630 Shares |
| Minimum application amount | ₹13,770 |
| Maximum application amount | ₹192,780 |
| Listing Exchange | BSE & 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
| Particulars | For the year/period ended (₹ in million) | |||
|---|---|---|---|---|
| 31-Dec-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Assets | 51,051.47 | 52,037.88 | 40,524.34 | 34,706.28 |
| Total Revenue | 39,956.32 | 43,953.02 | 46,845.60 | 39,203.99 |
| Profit After Tax | 4,563.21 | 3,403.29 | 6,367.83 | 5,280.39 |
FY2018 | FY2019 | FY2020 | 9M FY2021 | |
| Revenue | 3,920.4 | 4,684.6 | 4,395.3 | 3,995.6 |
| Expenses | 3,405.5 | 3,920.7 | 4,099.9 | 3,489.5 |
| Comprehensive income | 521.9 | 641.8 | 340.8 | 460.2 |
| Margin (%) | 13.3 | 13.7 | 7.8 | 11.5 |
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
Fax: +91 40 2343 1551
Email: einward.ris@kfintech.com
Website: www.kfintech.com
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
Email: compliance@shyamgroup.com
Website: www.shyammetalics.com
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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