Shyam Metalics and Energy Limited has announced the price band for its forthcoming initial public offering (IPO), which was fixed at Rs 303-306 per share. The Kolkata-based company’s IPO will open on June 14 and will close on June 16. The bidding for anchor investors will begin on June 11. This can turn out to be a good investment opportunity for all those who want to earn good profit by investing in IPOs this month.
Shyam Metalics manufactures l steel products and ferro alloys. The size of the company’s IPO is Rs 657 crore. The company will present shares worth Rs 252 crore on offer for sale (OFS). Eligible employees will get a discount of Rs 15 per share on the final price offer. The OFS comprises a sale of upto Rs 37 crore by Shubham Capital Pvt Ltd, Rs 63 crore by Shubham Buildwell Pvt Ltd, Rs 25 crore by Kalpataru Housefin and Trading, Rs 30 crore by Dorite Tracon, and up to Rs 97 crore by Narantak Dealcom Ltd
The steelmaker will use Rs 657 crore raised through the IPO to repay its debt and its associate company Shyam Sel and Power Ltd (SSPL). ICICI Securities, Axis Capital, IIFL Securities, JM Financial, and SBI Capital Markets have been appointed as the lead manager by Shyam Metalics and Energy Limited.
The company has established a team of 42 distributors in 13 states and one union territory. It has a total of three manufacturing units at Sambalpur in Odisha and Jamuria and Mangalpur in West Bengal.
As of December 2020, the company had a standalone debt of Rs 381.12 crore, while its associate SSPL had a debt of Rs 398.60 crore. The Consolidated debt of Shyam Metalics stood at Rs 886.29 crore.
In December 2020, Shyam Metalics reported revenue of Rs 3,933.08 crore compared with Rs 3,283.09 crore a year ago. Net income for the period was at Rs 456.32 crore compared to Rs 260.36 crore a year ago.