Shyam Metalics and Energy Ltd (SMEL) Rs 909-crore initial public supplying (IPO) will open for subscription on June 14, 2021. The public concern will close on June 16 and the bidding for anchor investors will open on June 11. The steel maker firm has reduce the size of its IPO from Rs 1,107 crore to Rs 909 crore, soon after promoters offloaded Rs 252 crore shares from their personal stake against Rs 450 crore as planned earlier. The fresh concern size remained the similar at Rs 657 crore. The lead managers to the concern are ICICI Securities, Axis Capital, IIFL Securities, JM Financial and SBI Capital Markets. KFin Technologies Private Ltd is the registrar to the public concern.
Shyam Metalics and Energy has reported 6.56 per cent CAGR in its revenues from fiscal 2018 to 2020. “Owing to rising metal prices, the metal stocks are enjoying a sharp edge in the market. If the issue is priced reasonably it should garner a strong response from investors,” Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told TheSpuzz Online.
Shyam Metalics and Energy OFS consists of
– Subham Capital Private Ltd: up to Rs 37 crore
– Subham Buildwell Private Ltd: up to Rs 63 crore
– Kalpataru Housefin & Trading Private Ltd: up to Rs 25 crore
– Dorite Tracon Private Ltd: up to Rs 30 crore
– Narantak Dealcomm Ltd: up to Rs 97 crore
Shyam Metalics and Energy has intended to utilise the net proceeds from the fresh concern for repayment or prepayment of Rs 470 crore of its debt and that of its subsidiary, and for other basic corporate purposes. The firm has a total metal capacity of 5.71 million tonne and 227 MW of captive energy. The capacity will be ramped up to 11.57 million tonne by 2025 as brownfield projects in two plants of Jamuria in West Bengal and Sambalpur in Odisha. “With states gearing up to unlock the economic activity in a phased manner, the metal sector’s outlook seems to be improving and Shyam Metalics is positioned well to sustain in the long term as they are one of the least leveraged steel makers,” Likhita Chepa, Senior Research Analyst at CapitalBy means of Global Research, told TheSpuzz Online. Chepa has advised investors to subscribe to this concern with a extended-term point of view.
The listed peers of Shyam Metalics and Energy Ltd are Tata Steel Ltd, JSW Steel Ltd, Steel Authority of India Ltd, Jindal Steel and Power Ltd and Tata Steel Long Products Ltd. Steel demand is closely associated with GDP development, with steel demand to GDP development multiplier varying across phases. After lagging India’s GDP development from 2012 to 2013, steel demand development outpaced macro-financial development in Fiscal 2018 and Fiscal 2019. A gradual expansion in GDP and rise in revenue has led to robust development in auto, customer durables, railways, very affordable housing, and rural housing. India is the second-biggest producer of steel in the world with a almost 6% share of worldwide steel production.
(The stock suggestions in this story are by the respective investigation analysts and brokerage firms. TheSpuzz Online does not bear any duty for their investment suggestions. Capital markets investments are topic to guidelines and regulations. Please seek advice from your investment advisor just before investing.)