MUMBAI: Kolkata-based Shyam Metalics and Energy received markets regulator Sebi’s nod to float initial public offer. The company is planning an IPO of Rs 1107 crore which comprises a fresh issuance of equity shares aggregating up to Rs. 657 crore and an offer for sale by promoters aggregating up to Rs. 450 crores.
The company had filed its draft red herring prospectus (DRHP) on February 27, 2021, with the market regulator. The company intends to utilize the net proceeds from the fresh issue for repayment or prepayment of Rs 470 crore of its debt and that of its subsidiary, Shyam
and Power, and for other general corporate purposes.
The portion reserved for qualified institutional buyers will be up to 50 per cent of the offer, non-institutional investors to have up to 15 per cent of the portion reserved while up to 35 per cent will be reserved for the Retail Investors.
The Kolkata based long steel products and ferroalloy focused company has been EBITA positive since its operations in 2005 and sells intermediate and final products across the steel value-chain catering to institutional and end-use customers through 42 distributors, brokers across 13 states, and 1 union territory.
The company currently operates three manufacturing plants that are located at Sambalpur in Odisha and Jamuria and Mangalpur in West Bengal.
The company sells Thermo mechanically treated bars and structural products under the SEL brand name and as of Dec 31, 2020, had an aggregate metal capacity of its 3 manufacturing plants at 5.71 million tonnes per annum which stand to increase to 11.60 mn MTPA as per the ongoing capacity expansion plans by FY2025. It was the fourth-largest player in the sponge iron industry when compared with Indian peers on the basis of capacity.
Additionally, SMEL is looking to enter in segments such as pig iron, ductile iron pipes and aluminium foil and is in the process of commissioning an aluminium foil rolling mill at Pakuria in West Bengal with a proposed installed capacity of 0.04 MTPA, expected to become operational by FY2022.