Shyam Metalics sets price band at Rs 303-306 for Rs 909 cr-IPO

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The IPO comprises fresh issuance of equity shares worth up to Rs 657 crore . (REpresentative Image)

Integrated metal producing company Shyam Metalics and Energy on Tuesday fixed a price band of Rs 303-306 a share for its Rs 909 crore-initial public offer (IPO). The three-day IPO will open on June 14 and close on June 16 and the bidding for anchor investors will open on June 11, the company said in a statement.

The IPO comprises fresh issuance of equity shares worth up to Rs 657 crore and an offer for sale (OFS) to the tune of Rs 252 crore by existing shareholders. Now, the size of the public issue has been reduced to Rs 909 crore from Rs 1,107 crore as it has been decided to offloaded Rs 252 crore shares through OFS against Rs 450 crore as planned earlier.

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Those participating in the OFS are Subham Capital, Subham Buildwell, Kalpataru Housefin and Trading, Dorite Tracon, Narantak Dealcomm and Toplight Mercantiles. The company intends to utilise the net proceeds from the fresh issue for repayment or prepayment of Rs 470 crore of its debt and that of its subsidiary, Shyam SEL and Power; and for other general corporate purposes.

Shyam Metalics and Energy, which filed preliminary IPO papers with the capital markets regulator Securities and Exchange Board of India (Sebi) in February, received its go ahead on May 11.

The Kolkata-based long steel products and ferro alloy focused company 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 one union territory.

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Forex gains supported overall ebitda margin: During H1FY21, the company had Rs 500 million as forex gain vs Rs 900 million forex loss in H1FY20. Overall gains on exports due to merchandise from India Scheme (MEIS) had decreased to Rs 200 million in H1FY21 vs Rs 500 million in H1FY20.

It currently operates three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal.

The company had tried to tap the capital markets in the past too. It had filed draft papers for IPO with Sebi in 2018 and had even received clearance from the regulator too. However, the company deferred its plans to list on the bourses.

ICICI Securities, JM Financial, Axis Capital, IIFL Securities and SBI Capital Markets are the book running lead managers to the issue


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