Shyam Metalics And Energy Limited IPO

Incorporated in 2002, Shyam metalics and energy limited is a leading integrated metal producing company in India. Its main focus is on long steel products and ferro alloys. As of February 2021, Shyam Metalics is one of the largest producers of ferro alloys in India in terms of installed capacity. As of 31st March 2020, it was one of the leading players in terms of pellet capacity and the fourth-largest player in the sponge iron industry. It was also one of the leading integrated steel and ferro alloys producers in the eastern region of India.

Shyam Metalics is currently operating 3 manufacturing plants which are located in Sambalpur (Odisha), Jamuria and Mangalpur (West Bengal). The aggregate installed metal capacity was 5.71 million tonnes per annum (MTPA) of its manufacturing plants as of 31st December 2020. It is also involved in the process of increasing the aggregate installed capacity of existing manufacturing plants from 57.1 MTPA to 11.60 MTPA and the aggregate installed capacity of captive power plants from 227 MW to 357 MW. The proposed expansions may become operational between the Fiscal year 2022 to 2025.

The company primarily produces intermediate and long steel products like sponge iron, iron pellets, steel billets, TMT, wire rods, and structural products. It also produces ferro alloys products with a focus on high-margin products like specialised ferro alloys and customised billets for special steel applications.

The promoters of the company are 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, and Toplight Mercantiles Private Limited.

Strengths of the Company:

The strategic location of manufacturing plants which are supported by robust infrastructure
Has integrated operations across the steel value chain
Diversified product mix with a focus on value-added products
Delivered strong financial growth and has good credit ratings
Has an experienced senior management team

Purpose of the IPO:

Repayment or pre-payments of the borrowings of the company or its Subsidiaries
For general corporate purposes

Financial Performance of the company:

	For the nine-month period ended 31st December 2020	FY 2020	FY 2019	FY 2018
Total Revenue	3,995.63	4,395.30	4,684.56	3,920.39
Total Expenses	3,489.52	4,099.86	3,920.69	3,405.45
Profit After Tax	456.32	340.32	636.78	528.03
Total Assets	5,105.14	5,203.78	4,052.34	3,470.62

*All the values are in crores and as per DRHP.

Valuation of the Company:

	For the nine-month period ended 31st December 2020	FY 2020	FY 2019	FY 2018
Basic Earnings per Share (EPS)	19.53	14.57	25.86	18.17
Diluted Earnings per Share (EPS)	19.53	14.57	25.86	18.17
Return on Net Worth (%)	13.89%	12.04%	24.27%	22.89%
Net Assets Value per Equity share	140.63	120.97	106.57	79.36

*As per DRHP.

Shyam Metalics And Energy Limited IPO DRHP

IPO details:

Face Value	₹10 per equity share
Market Lot	45 Shares
Minimum Order Quantity	45 Shares
Price Band	₹303 - ₹306 per equity share
Issue type	Book Built Issue IPO
Issue Size	₹909 Crores
Fresh Issue	₹657 Crores
Offer for Sale	₹252 Crores
Listing	NSE, BSE

Important IPO dates:

Open Date	14th June 2021
Close Date	16th June 2021
Basis of Allotment Date	21st June 2021
Initiation of Refunds	22nd June 2021
The credit of shares to Demat Account	23rd June 2021
Listing Date	24th June 2021

Allocation Quota:

Category	Portion
Qualified Institutional Buyers (QIBs)	Not more than 50%
Non- Institutional Buyers (NIIs)	Not less than 15%
Retail Investors	Not less than 35%

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