The issue comprises fresh issuance of shares, aggregating up to Rs 657 crore, and an offer for sale of up to Rs 252 crore by existing shareholders. The company has proposed to use the net proceeds from the fresh issue towards repayment or prepayment of up to Rs 470 crore of its debt and that of its subsidiary, Shyam SEL and Power, and for other general corporate purposes.
Shyam Metalics is a producer of intermediate and long steel products, such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferroalloys. It also focuses on high-margin products such as customised billets and specialised ferroalloys for special steel applications.
The company is in the process of further diversifying its product portfolio by entering various segments such as pig iron, ductile iron pipes and aluminum foil. The company has manufacturing plants in Odisha and West Bengal. Plants at Sambalpur and Jamuria are forward and backward integrated, the company said in a release.
For the nine months ended December 31, power units produced from captive power plants accounted for 79.58 per cent of total power consumed. Shyam Metalics had 42 distributors across 13 states and one Union Territory in India, as of December 31, 2020. It claims to have Jindal Stainless, Jindal Stainless (Hisar), and Rimjhim Ispat and international customers include Norecom DMCC, Norecom and POSCO International Corporation, among its clients.
ICICI Securities,
, Axis Capital, and SBI Capital Markets are the BRLMS to the offer. The IPO will close on Wednesday, June 16.
