Shyam Metalics & Energy Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹306
Per ShareLot Size
45 Shares
Minimum Investment
₹13,770
Issue Size
₹909 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Shyam Metalics & Energy Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
98.49%
Issue Type
Book Building
ISIN
INE810G01011
About the Company
Shyam Metalics and Energy Limited is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys. It is amongst the largest producers of ferro alloys in terms of installed capacity in India, as of February 2021. It has the ability to sell intermediate and final products across the steel value chain. As of March 31, 2020, the company was 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.
Industry Overview
India steel demand has increased at a CAGR of approximately 5.4% during Fiscal 2015 to Fiscal 2020. Going forward, steel demand is expected to recover and continue its strong growth rate at 5.0% to 6.0% through Fiscal 2025 supported by the Government led initiatives especially affordable housing and infrastructure projects in metro, road, and urban infra space (which are more steel intensive). Further, the Government's impetus on infrastructure is expected to drive double digit steel demand growth in Fiscal 2022.
Company History
Shyam Metalics and Energy Limited ("Company") was originally incorporated as Shyam DRI Power Limited on December 10, 2002 at Kolkata, West Bengal, India as a public limited company under the Companies Act, 1956 and received the certificate for commencement of business from the Registrar of Companies, West Bengal at Kolkata ("RoC") on December 11, 2002. Subsequently, the name of the Company was changed to Shyam Metalics and Energy Limited vide a special resolution passed by its Shareholders on November 23, 2009, and a fresh certificate of incorporation consequent upon change of name was issued by the RoC on January 5, 2010.
Products & Services
- Integrated Metal producing company with a focus on long steel products and ferro alloys
Growth Strategy
- Continue to increase its manufacturing capacities
- Introduce new products by leveraging its forward integration capabilities
- Continue to maintain low leverage with healthy capitalisation metrics
- Continue to focus on cost efficiency and increase profitability and market share
- Focus on exports
Customer Base
Jindal Stainless Ltd, Jindal Stainless (Hisar) Ltd, Rimjhim Ispat Ltd, Norecom DMCC, Norecom Ltd, POSCO International Corporation, World Metals & Alloys(FZC), Traxys North America LLC, JM Global Resources Ltd, Goenka Steels Pvt Ltd, Vijayshri Steel Pvt Ltd
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 29,705,880 * equity shares of face value of Rs. 10 each ("equity shares") of Shyam Metalics and Energy Limited ("company" or "issuer") for cash at a price^ of Rs. 306 per equity share (including a share premium of Rs. 296 per equity share) ("offer price") aggregating to Rs. 908.55* Crores ("offer") comprising a fresh issue of 21,470,588* equity shares aggregating to Rs. 656.55*^ Crores by the company (the "fresh issue") and an offer for sale of 82,35,292* equity shares aggregating to Rs. 252* Crores ("offer for sale"), comprising 1,209,150* equity shares aggregating to Rs. 37 Crores by Subham Capital Private Limited, 2,058,823* equity shares aggregating to Rs. 63 Crores by Subham Buildwell Private Limited, 816,993* equity shares aggregating to Rs. 250 Crores by Kalpataru Housefin & Trading Private Limited, 980,392* equity shares aggregating to Rs. 300 Crores by Dorite Tracon Private Limited and 3,169,934* equity shares aggregating to Rs. 970 Crores by Narantak Dealcomm Limited (collectively, the "promoter selling shareholders" or the "selling shareholders", and such equity shares, the "offered shares"). The offer constitutes 11.65 % (subject to finalization of Basis of Allotment) of the post-offer paid-up equity share capital of the company. The offer includes a reservation of 300,000* equity shares, aggregating to Rs. 87.30^ Crores, for subscription by eligible employees (as defined herein) (the "employee reservation portion"). The offer less the employee reservation portion is hereinafter referred to as the "net offer". The offer and the net offer constitute 11.65 % and 11.53 % (subject to finalization of basis of allotment), respectively, of the post-offer paid-up equity share capital of the company. The face value of the equity shares is Rs. 10 each. * subject to finalisation of the basis of allotment ^A Discount of 4.90 % on the offer price was offered to the eligible employees bidding in the employee reservation portion ("employee discount") equivalent to Rs. 15 per equity share. The price is Rs.306 per share. The face value of Rs.10 each and is 30.6 times of the face value.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Integrated operations across the steel value chain;
- Strategic location of its manufacturing plants supported by robust infrastructure leading to cost and time efficiencies;
- Diversified product mix with strong focus on value added products such as ferro alloys, association with reputed customers and robust distribution network;
- Strong financial performance and credit ratings;
- Experienced Board and senior management team
- Loss of any of its suppliers or a failure by its suppliers to deliver some of its primary raw materials such as iron ore, iron ore fines, coal, chrome ore and manganese ore may have an adverse impact on its ability to continue its manufacturing process without interruption and its ability to manufacture and deliver the products to Its customers without any delay.
- Its success depends on stable and reliable logistics and transportation infrastructure. Disruption of logistics and transportation services could impair the ability of its suppliers to deliver raw materials or its ability to deliver products to its customers and/ or increase its transportation costs, which may adversely affect its operations.
- The demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves. A decrease in steel prices may have a material adverse effect on its business, results of operations, prospects and financial condition.
- The COVID-19 pandemic and resulting deterioration of general economic conditions has impacted its business and results of operations in the past and the extent to which it will impact its future business and results of operations will depend on future developments, which are difficult to predict.
- The steel industry is characterized by volatility in the prices of raw materials and energy which could adversely affect its profitability.