"The matter is sub-Judice and shall be resolved in due course,” the company said in a statement.

It further stated that this inorganic growth will witness the establishment of manufacturing footprints in the state of Madhya Pradesh and add capacities of 1,50,000 tonnes per annum (TPA) stainless steel (SS) / wire rod & bar mill.

Ferro alloys a key input material for stainless steel is extensively produced by SMEL's existing companies. The Government has mandated a minimum 20% use of stainless steel in Coastal Areas which ensures a very stable demand for these products.

With this development, Shyam Metalics has embarked on a ‘diversification approach' in the metal space to chart the company's growth journey and has proposed to further invest Rs 7,500 crore over the next five years.

In order to meet the growth plans with organic and inorganic expansion, SMEL's present capex aims at growing to Rs 10,000 crore in the next five years.

Brij Bhushan Agarwal, vice chairman and managing director, Shyam Metalics and Energy said “With a focus on achieving operational excellence, adopting capital prudence across the board, and leveraging our expertise and capabilities, Shyam Metalics has demonstrated stable growth path in past four decades. We remain PAT positive since the commencement of our operations in 2005.

The current investments across multiple portfolios will only take the company to the next level of diversification and business excellence, further strengthening its domestic and global position in the market.”

Shyam Metalics is an integrated metal-producing company based in India primarily in the steel Industry in West Bengal and Odisha with a focus on long steel products and ferro alloys. The company is amongst the largest producers of ferro alloys in terms of installed capacity in India. It has the ability to sell intermediate and final products across the steel value chain. SMEL is one of the leading players in terms of pellet capacity and the largest coal fired player in the sponge iron industry in terms of sponge iron capacity in India.

The company's consolidated net profit declined 72.40% to Rs 114.30 crore despite a 23.69% to Rs 3,085.20 crore in Q2 FY23 over Q2 FY22.