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.
Table of Contents
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
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Dec-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 5,105.15 | 5,203.79 | 4,052.43 | 3,470.63 | |
| Total Revenue | 3,995.63 | 4,395.30 | 4,684.56 | 3,920.40 | |
| Profit After Tax | 456.32 | 340.33 | 636.78 | 528.04 | |
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 14.57 | 14.57 | 3 |
| Financial Year 2019 | 25.86 | 25.86 | 2 |
| Financial Year 2018 | 18.17 | 18.17 | 1 |
| Weighted Average | 18.93 | 18.93 | |
| (9 months) Dec. 31, 2020 | 19.53 | 19.53 | – |
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
| IPO Opening Date | 14 June 2021 |
| IPO Closing Date | 16 June 2021 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 303 to 306 per equity share |
| Market Lot | 45 |
| Min Order Quantity | 45 |
| Listing At | BSE, NSE |
| Issue Size | 909 cr |
| Fresh Issue | 657 cr. |
| Offer for Sale | 252 cr. |
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.
| IPO Open Date | 14 June 2021 |
| IPO Close Date | 16 June 2021 |
| Basis of Allotment Date | 21 June 2021 |
| Initiation of Refunds | 22 June 2021 |
| Credit of Shares to Demat Account | 23 June 2021 |
| IPO Listing Date | 24 June 2021 |
Shyam Metalics IPO Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability, for every shareholder. |
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
- Brij Bhushan Agarwal
- Sanjay Kumar Agarwal
- Mahabir Prasad Agarwal
- Subham Buildwell Private Limited
- Narantak Dealcomm Limited
- Subham Capital Private Limited
- Kalpataru Housefin & Trading Private Limited
- Dorite Tracon Private Limited
- 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:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 23 June 2021 | 155 | 1500 | |
| 22 June 2021 | 165 | 3800 | |
| 21 June 2021 | 162 | 2500 | |
| 20 June 2021 | 155 | 3300 | |
| 19 June 2021 | 150 | 3500 | |
| 18 June 2021 | 162 | 4500 | |
| 17 June 2021 | 165 | 3200 | |
| 16 June 2021 | 160 | 4300 | |
| 15 June 2021 | 170 | 3800 | |
| 14 June 2021 | 150 | 2500 | |
| 13 June 2021 | 165 | 3500 | |
| 12 June 2021 | 155 | 4500 | |
| 11 June 2021 | 145 | 4200 | |
| 10 June 2021 | 150 | 4800 | |
| 09 June 2021 | 140 | ||
| 08 June 2021 | 120 | ||
| 07 June 2021 | 105 | ||
| 06 June 2021 | 102 | ||
| 05 June 2021 | 100 |
Check The GMP Of other 4 IPOs
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.
Shyam Metalics IPO Brokerage views
- Yes Securities : Subscribe
- Choice Brokering: Subscribe
- Axis Securities: Subscribe
- IIFL Securities: Subscribe
- Trade swift: Subscribe
- Anand Rathi : Subscribe
- ICICI Securities: Subscribe
Shyam Metalics IPO Subscription
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 14 June 2021 | 1 | 0.00 | 0.71 | 2.21 | 0.27 | 1.24 |
| 15 June 2021 | 2 | 0.82 | 2.63 | 5.86 | 0.78 | 3.68 |
| 15 June 2021 | 3 | 157.29 | 343.38 | 11.76 | 1.55 | 122.63 |
Shyam Metalics and Energy IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | Tata Steel | 9.98 |
| 2 | JSW Steel | 20.62 |
| 3 | Sail | 16.22 |
| 4 | Jindal Steel and Power | 5.77 |
| 5 | Tata Steel Long Products | 7.39 |
Shyam Metalics and Energy IPO Promoter Holding
| Pre Issue Share Holding | 88.51% |
| Post Issue Share Holding |
Shyam Metalics and Energy IPO Prospectus
Shyam Metalics IPO Contact Details
Shyam Metalics And Energy Limited
Trinity Tower, 7th Floor, 83, Topsia Road,
Kolkata – 700046, West Bengal, India
Tel: +91 33 4016 4000
E-mail: [email protected]
Website: https://www.shyammetalics.com/
Registrar
KFin Technologies Private Limited
Selenium Tower-B, Plot 31 & 32, Gachibowli
Financial District, Nanakramguda, Serilingampally
Hyderabad 500 032, Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- Axis Capital Limited
- IIFL Securities Limited
- JM financial limited
- Icici securities limited
- SBI capital markets limited
We hope we are able to answer all your questions about the Shyam Metalics and Energy IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Renunciation
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Shyam Metalics Limited
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Shayam Metalics Limited applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Shyam Metalics and Energy IPO Opening Date?
Shyam Metalics and Energy IPO will open on 14 June 2021.
Shyam Metalics and Energy IPO Listing Date?
Shyam Metalics and Energy IPO will list on 24 June 2021.
Shyam Metalics and Energy IPO GMP Today?
Shyam Metalics and Energy IPO Grey Market Premium is INR 155.
Shyam Metalics and Energy IPO Allotment Date?
Shyam Metalics and Energy IPO basis of allotment will be 21 June 2021.
Lot size for Shyam Metalics and Energy IPO?
Lot size for Shyam Metalics and Energy IPO is 45.
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