Shyam Metalics and Energy IPO

Shyam Metalics and Energy is a leading integrated metals manufacturing firm, focusing on long steel products and ferro alloys in India. They have a consistent track record of delivering operating profitability. Shyam Metalics and Energy IPO will hit the market on 14 June 2021.

About

Since the commencement of their operations in fiscal 2005, They have delivered a positive EBITDA in each of the fiscals.

As of March 31, 2020, They were among the leading players in terms of pellet capacity and the fourth biggest player in the sponge iron industry in terms of capacity of the sponge iron industry in India (Source: CRISIL Report).

Plants

They operate 3 manufacturing plants, one in Odisha and two in West Bengal. The total installed metal capacity of their manufacturing plants is 5.71 (including intermediate and final products) as of December 31, 2020.

Their manufacturing plants also include captive power plants with a total installed capacity of 227 MW as on 31 December. Their Sambalpur manufacturing plant caters to customers in the southern and western areas of India. While Their Jamuria and Mangalpur manufacturing plants cater to customers in the northern and eastern areas.

Operations

They operate two “ore to metal” integrated (forward and backward) steel manufacturing plants, one in Sambalpur, Odisha and one in Jamuria, West Bengal. Those plants include production of captive railway sidings, captive power plants, iron pellets, spelling iron, billet, TMT, Wire rods and structural mills and ferro alloy plants.

They also operate a manufacturing plant at Mangalpur, West Bengal which includes a sponge iron and ferro alloy plant and a captive power plant.

Shyam Metalics IPO Financials Trends

Basic and Diluted Earnings Per Share (EPS)

Shyam Metalics and Energy IPO Issue

Shyam Metalics and Energy, headquartered in Kolkata has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1107 crore on 26 February,  2021.

The Offer includes a fresh equity of Rs. 657 crore and an offer for sale(OFS) up to Rs. 450 cr. value equity shares of face value of 10 per share, by the promoters.

They got approval from Securities and Exchange Board of India(SEBI) on 17 May, 2021 to float the initial public offering (IPO) in the market.

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

• centralized processes, all over the steel value chain;
• Diversified product portfolio with high reliance on value added materials including ferro alloys, partnership with reputable clients, and comprehensive supply chain;
• Strategic position of their production facilities backed by powerful infrastructure contributing to price and time efficiencies;
• Excellent financial condition and credit ratings;
• A professional Board of Directors and top management;

Shyam Metalics and Energy IPO Plans

The company tried to tap the capital markets in 2018 and even received market regulatory approval in early 2019 and was to launch an IPO next year.

However, the coronavirus epidemic and weak market sentiment forced it to postpone the plan Forced.

Shyam Metalics and Energy IPO Details

Shyam Metalics and Energy IPO Tentative Date

Shyam Metalics and Energy IPO open date is 14 June 2021, and the close date is 16 June 2021. The issue may list on 24 June 2021.

Shyam Metalics IPO Basis of Allotment

Shyam Metalics IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Shyam Metalics IPO.

Promoters

1. Brij Bhushan Agarwal
2. Sanjay Kumar Agarwal
3. Mahabir Prasad Agarwal
4. Subham Buildwell Private Limited
5. Narantak Dealcomm Limited
6. Subham Capital Private Limited
7. Kalpataru Housefin & Trading Private Limited
8. Dorite Tracon Private Limited
9. Toplight Mercantiles Private Limited.

Shyam Metalics IPO GMP

Shyam Metalics IPO Grey market premium is as follows and you can check GMP of other 4 IPOs as well from links given below:

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Shyam Metalics IPO Review

You can apply for listing gain if you have short-term view and while if you have long term view then also you can apply as metal sector is looking promising right now.

Shyam Metalics IPO Risk

The production schedule may be delayed if one of the firm ‘s primary suppliers stops to do business with them or significantly decreases the quantity of raw materials delivered to them, and they are unable to find other sources for such raw materials to satisfy the demands at production facilities.

The steel sector’s demand and prices are variable, and they are affected by the cyclical nature of the sectors it supports. A drop in steel prices could have a significant negative impact on the company, leading to lower revenue and margins, as well as write-downs of completed steel products and raw material inventories.

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