Incorporated in 2002, Shyam Metalics and Energy Limited (SMEL) is India’s leading integrated metal producer company. The company is primarily engaged in the production of long steel products such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys. As of February 2021, it is among India’s largest producers of ferro alloys in terms of installed capacity and the fourth-largest player in the sponge iron industry.
The company serves institutional customers and end-users. Jindal Stainless Limited, Rimjhim Ispat Limit are some of its domestic clients whereas Norecom DMCC, Norecom Limited, POSCO International Corporation, World Metals & Alloys, Traxys North America LLC, JM GLobal Resources, Vijayshri Steel Pvt Ltd, etc. are the international clients. The company has a partnership with 42 distributors to offer its products across 13 states and 1 union territory.
Currently, the firm has 3 manufacturing plants located in Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. As of Dec 31, 2020, its manufacturing units have an aggregated installed metal capacity of 5.71 million tonnes per annum. The company is looking to expand its capacity from 5.71 MTPA to 11.60 NTPA by 2025. The Sambalpur and Jamuria plants are integrated steel manufacturing plants that produce captive railway sidings, captive power plants, iron pellet, sponge iron, bilet, thermo mechanically treated (TMT), wire rod, and structural mills, and ferro alloys plants. Further, its manufacturing facility at Mangalpur comprises sponge iron and ferro alloy plants, and a captive power plant.
Objects of the Issue:
The IPO proceed will be used towards the following purposes;
- Repayment and/or pre-payment of company and its subsidiary (SSPL)’s debt fully or partially.
- General corporate purposes.
Shyam Metalics Company Financial Report
The company looks strong as per the financial reports from 2018 to 2021. The PAT is been in the green for the last 4 years or so. The PAT increased 18% in 2019 compared to 2018 while decreased in 2020 and 2021 (9M) reports, we can consider it an impact of Covid-19. Still the the company able to get the results in positive due the the demand of their products in India. The revenues increased YOY till 2020.
| ₹ in Crores | |||
| Revenue | Expense | PAT | |
| 2018 | ₹3920 | ₹3406 | ₹528.04 |
| 2019 | ₹4685 | ₹3921 | ₹636.78 |
| 2020 | ₹4395 | ₹4100 | ₹340.33 |
| 2021 – 9M | ₹3996 | ₹3490 | ₹456.32 |
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
- Toplight Mercantiles Private Limited
Shyam Metalics IPO Date & Price Band
| IPO Open: | 14 June 2021 |
| IPO Close: | 16 June 2021 |
| IPO Size: | Approx ₹909 Crores |
| Fresh Issue: | Approx ₹657 Crores |
| Offer for Sale: | Approx ₹252 Crores |
| Face Value: | ₹10 Per Equity Share |
| Price Band: | ₹303 to ₹306 Per Share |
| Listing on: | BSE & NSE |
| Retail Portion: | 35% |
| Employee Discount: | ₹15 Per Shares |
| Equity: | – Shares |
Shyam Metalics IPO Allotment & Listing
The Shyam Metalics IPO date is 14 June 2021 and the close date is 16 June 2021. The allotment will be finalized on 21 June 2021 and the IPO may list on 24 June 2021.
| Basis of Allotment: | 21 June 2021 |
| Refunds: | 22 June 2021 |
| Credit to Demat Account: | 23 June 2021 |
| Listing Date: | 24 June 2021 |
Shyam Metalics IPO Lead Managers
- Axis Capital Limited
- ICICI Securities Limited
- IIFL Holdings Limited
- JM Financial Consultants Private Limited
- SBI Capital Markets Limited