By Dominick Rodrigues
Mumbai : Shyam Metalics and Energy Limited (“SMEL”) is coming out with its initial public offering (IPO) of equity shares priced at Rs 303 to Rs. 306 per share, aggregating to total Rs 909 cores. The IPO opens on June 14, 2021 and closes on June 16, 20201.
ICICI Securities Limited, JM Financial Limited, Axis Capital Limited, IIFL Securities Limited and SBI Capital Markets Limited are the BRLMS to the Offer.
Brij Bhushan Agarwal, Vice-Chairman and Managing Director, Shyam Metalics & Energy Limited, said that the company proposes to utilise the Net Proceeds from the fresh Issue towards repayment/prepayment of up to Rs 470 crores of its debt and that of its subsidiary, Shyam SEL and Power Limited, besides other general corporate purposes.
Agarwal highlighted the Group as a producer of intermediate and long steel products like iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys products — with specific focus on high margin products such as customised billets and specialised ferro alloys for special steel applications.
Noting that the Group is currently in process of further diversifying its product portfolio by entering into the segments such as, pig iron, ductile iron pipes and aluminium foil, Agarwal said its key strength lies in its integrated operations across the steel value chain and strategic locations of its manufacturing plants in Odisha and West Bengal, which are well connected by railways, roadways and ports in the eastern region of India and are supported by infrastructure in terms of captive railway sidings and captive power plants.
While its manufacturing plants at Sambalpur and Jamuria are forward and backward integrated, the Group is present across the steel value chain with a diversified product mix and has strategic locational advantage, he said, adding that the nine months ended December 31, 2020 witnessed power units produced from the Group’s captive power plants accounting for 79.58% of their total consumed power units.
With a wide distribution network partnered through 42 distributors across 13 states and one union territory in India, as of December 31, 2020, he said that the Group’s domestic customers included Jindal Stainless Limited, Jindal Stainless (Hisar) Limited and Rimjhim Ispat Limited, besides international customers like Norecom DMCC, Norecom Limited, POSCO International Corporation, World Metals & Alloys (FZC), Traxys North America LLC, JM Global Resources Limited, Goenka Steels Private Limited and Vijayshri Steel Private Limited.
