IPO Alert: Shyam Metalics and Energy opens from 14 to 16 June 2021

Blog | IPO

With the gradual lifting of regional lockdowns and restrictions being eased, daily life is slowly limping back to normalcy. Going ahead, we may see many infrastructure and construction projects being restarted.

If you are thinking about how to take advantage of this economic revival, you might consider picking up a stake in steel manufacturer Shyam Metalics and Energy. The company is set to hit the markets on Monday, 14 June, ending the two-month IPO drought. We bring you all the details about this IPO.    

Key details

  • Price band: ₹303–306 per equity share
  • Lot size: 45 shares
  • IPO size: ₹909 crore
  • Fresh issue: ₹657 crore
  • Cost per lot: ₹13,770
  • Issue opens: 14 June 2021
  • Issue closes: 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
  • Expected listing date: 24 June 2021

About Shyam Metalics and Energy

Kolkata-based Shyam Metalics and Energy is a steel manufacturer with a focus on long steel products and ferro alloys (a high-margin product). The company has three manufacturing units in India with an aggregate operating capacity of 5.70 MTPA.  

It has a strong track record of profitability. The company has reported positive operating profits in each fiscal year since 2005. Even in a pandemic-hit year, the company reported an EBITDA (earnings before interest, tax, depreciation and amortisation) of ₹717 crore and net profit of ₹456 crore in the first three quarters of FY21. 

The steel maker—which caters to end-users as well as institutional customers—is the least leveraged among its peers. Further, the company has a negligible debt-to-equity ratio of 0.27x as of December 2020.

About the issue

Of the ₹909 crore IPO size, ₹657 crore is the fresh issue accounts and the rest of ₹252 crore is the offer for sale. The money raised from the fresh issue will be used for repaying debt and general corporate purposes.

IPO allocation quota

QIB NIB Retail
50% 15% 35%

To know more about the IPO, read its red herring prospectus here. The issue opens on 14 June 2021. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!