The initial public offer (IPO) of Shyam Metalics and Energy received bids for 2.59 crore shares as against 2.10 crore shares on offer, according to the stock exchange data at 17:00 IST on Monday (14 June 2021). The issue was subscribed 1.23 times.

The issue opened for bidding on Monday, 14 June 2021, and it will close on Wednesday, 16 June 2021. The price band for the IPO is set at Rs 303-306 per share. An investor can bid for a minimum of 45 equity shares and in multiples thereof.

The issue comprises of fresh issue of equity shares aggregating up to Rs 909 crore comprising of a fresh issue of up to Rs 657 crore and an offer for sale (OFS) of up to Rs 252 crore (including anchor portion of 88,21,764 equity shares).

The existing shareholders selling shares in the OFS are Subham Capital, SubhamBuildwell, NarantakDealcomm, KalpataruHousefin and DoriteTracon. Total selling shareholders pre-issue shareholding was 88.22%, which shall decrease to 77.56% at the upper price band of Rs 306.

Ahead of the IPO, the company finalized allocation of 88,21,764 equity shares to anchor investors at Rs 306 per share aggregating to Rs 269.94 crore.

The company proposes to utilize the net proceeds of the fresh issue towards repayment and/or pre-payment, in full or part, of debt of the company and SSPL (Shyam SEL and Power), one of the subsidiaries amounting Rs 470 crore and balance towards general corporate purposes. Gross debt was Rs 886.292 crore at the end of 31 December 2020.

On a consolidated basis, Shyam Metalics and Energy reported a consolidated net profit of Rs 456.32 crore and sales of Rs 3,933.08 crore in the nine months ended on 31 December 2020.

ShyamMetalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys. It is amongst the largest producers of ferro alloys in terms of installed capacity in India, as of February 2021.

The company sells intermediate and final products across the steel value chain. As of March 31, 2020, it is one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India. It is also one of the leading integrated steel and ferro alloys producers in the eastern region of India in terms of long steel products, as of March 31, 2020.

The company currently export products to Nepal, China, Bangladesh, Bhutan, United Kingdom, South Korea, Thailand, Indonesia, Taiwan and Japan, and is currently exploring newer geographies in North America, South America, Europe and Africa in order to increase exports.