Shyam Metalics IPO:GMP, Issue Size, Issue Price

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Shyam Metalics IPO is all set to make a debut in the stock market with an issue size of 909 Cr. Shyam Metalics and Energy Limited (SMEL) is India’s leading integrated metal producer company.     

Shyam Metalics IPO -Overview    

Shyam Metalics and Energy Limited IPO Issue Date           14-16 June 2021          
Shyam Metalics and Energy Limited IPO Opening Date           14 July 2021         
Shyam Metalics and Energy Limited IPO Face Value           INR 10 per share           
Shyam Metalics and Energy Limited IPO Price           INR 306 per share          
Shyam Metalics and Energy Limited IPO Lot Size            45 Shares          
Issue Size           909 Cr          
Offer for sale           252 Cr          
Issue Type           Book built Issue IPO           
Listing At           BSE, NSE          
QIB Shares Offered             155.71 times          
NII (HNI) Shares           339.98 times          
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, and Toplight Mercantiles Private Limited are the company promoters. 
Prudent Corporate Advisory Services IPO Details

Shyam Metalics Limited IPO-Tentative Dates           

Shyam Metalics and Energy Limited IPO opening date           14 June 2021          
Shyam Metalics and Energy Limited IPO closing date           16 June 2021          
Basis of Allotment           21 June 2021          
Initiation of Refunds           22 June 2021              
The credit of Shares to Demat          23 June 2021           
Shyam Metalics and Energy Limited IPO Listing Date           24 June 2021          

Shyam Metalics and Energy – Industry Overview.          

India’s steel demand has risen at a modest 5.4% CAGR during the past five years. Alloy steel has witnessed a decline in demand on account of automobile production from Fiscal 2019 onwards. As a result, the share of alloy in overall steel demand has fallen from 8.8% in 2014 to 2015 to 6.0% in 2019 to 2020. On the other hand, non-alloy steel has been growing at a CAGR of 6.0%. 

Further, long steel demand has grown at 3% CAGR over the past five years period primarily led by healthy growth in infra and modest growth in the housing segment. Flat steel on the other hand rose at around 8.6% CAGR during the same period. This has led to the share of long steel in overall finished steel demand to fall from 58% in Fiscal2015 to 52% in Fiscal2020. 

Shyam Metalics IPO – Company Overview     

Shyam Metalics and Energy Limited (SMEL) is a leading integrated metal-producing company based in India with a focus on long steel products and ferroalloys. Smel is amongst the largest producers of ferroalloys in terms of installed capacity in India, as of February 2021 and sell intermediate and final products across the steel value chain. As of March 31, 2020, they were one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India. SMEL is also one of the leading integrated steel and ferroalloys producers in the eastern region of India in terms of long steel products, as of March 31, 2020.SMEL have a consistent track record of delivering operating profitability, and since the commencement of the operations in Fiscal 2005. 

 Shyam Metalics IPO -Objectives           

  • Repayment and/or pre-payment of company and its subsidiary (SSPL)’s debt fully or partially. 
  • General corporate purposes. 

Shyam Metalics IPO – Financial Statements          

Particulars          31-Dec-21        31-Mar-20        31-Mar-19        
Total Assets          51,051.47 52,037.88 40,524.34 
Total Revenue          39,956.32 43,953.02 46,845.60 
Profit After Tax          4,563.21 3,403.29 6,367.83 

Shyam Metalics – Strengths          

  • Leading integrated metal producer in India. 
  • Strategically located manufacturing plants with a robust infrastructure. 
  • Diversified product portfolio. 
  • Strong financial performance and distribution network. 

Shyam Metalics – Weakness                               

  • Loss of any supplier or a failure by suppliers to deliver primary raw materials can impact operations. 
  • Demand and pricing in the steel industry are volatile. 
  • Shortage of essential utilities such as electricity and water could affect manufacturing operations. 

Company Contact Information

Shyam Metalics and Energy Limited
Trinity Tower, 7th Floor, 83,

Topsia Road, Kolkata – 700046, India

Phone: +91 33 4016 4000

Shyam Metalics Registrar

Phone: 04067162222, 04079611000

Shyam Metalics Lead Manager(s)

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