IPO Details
Bidding Dates
14 June – 16 June 2021
Minimum Investment
₹ 13,635
Lot Size
45 Shares
Price Range
₹ 303-306
About Company
Shyam Metallics is an integrated metal producing company in India. The company’s focus is on long steel products and ferroalloys. According to the company’s DRHP, the company is involved in pellet capacity and is the fourth-largest player in the sponge iron industry.
The company’s Sambalpur and Jamuria plants operate as ‘ore to metal’ integrated steel manufacturing plants. The Mangalpur plant comprises sponge iron and ferroalloy plants, and a captive power plant.
The company has 8 captive power plants. The plants use non-fossil fuels, such as, waste, rejects, heat and gas that are generated from the company’s operations itself. These are in turn used to produce electricity.
Strength and Risks
Strengths
Risks
- Company recycles non-fossil fuels and waste products to generate electricity. This reduces their power cost.
- Integrated manufacturing plants across the steel value chain giving greater control over operating margins.
- Manufacturing facilities are strategically located close to raw material sources.
- Diversified product mix
- Loss of any supplier or a failure by suppliers to deliver primary raw materials can impact operations.
- Demand and pricing in the steel industry is volatile.
- COVID-19 pandemic has impacted operations in the past and may impact in the future.
- No Long term agreement with customers.
Financials
Kolkata based steel producer company “Shyam Metalics and Energy Ltd” IPO (Initial Public Offer) will be open for subscription on June 14, 2021 and its will remain available for bidding till June 16, 2021. Company is planning to raise an amount of Rs. 909 Crore through this IPO.
According to stock market experts, Shyam Metalics IPO is likely to get strong response from subscribers, Increasing demand for the share in grey market is indicating a bumper listing of the stock.
Shyam Metalics stock is trading at a premium of Rs. 130/- above its issue price bank of Rs. 303-306. Its trading at Rs 436/- per share.
“Timing of this IPO listing is excellent as metal stocks are in uptrend. This uptrend may continue for next six to eight months for metal stocks, specifically steel stocks. Since Shyam Metalics is large steel company. This stocks is expected to give good returns on listing to its subscribers.”
Avinash Gorakshakar, Head Research
Profitmart Securities Pvt. Ltd.
Shyam Metalics has fixed its IPO price band at Rs 303-306. Shyam Metalics IPO lot size comprises 45 company shares. This means one can bid for minimum 45 Shyam Metalics shares. As single person can bid for maximum 14 lots, one can bid for maximum 630 shares of the metal company.
As a single bidder can apply for minimum one lot and maximum 14 lots of Shyam Metalics IPO and one lot of the public issue comprises 45 shares, minimum investment limit in the IPO is ₹13,770 while maximum limit for a single bidder is ₹1,92,780.
Shyam Metalics public issue will become available for subscription from 14th June 2021 and the issue will close on 16th June 2021
Company will issue fresh equity shares of Rs. 657 Crore and promoters and exiting investors will issue share for amount of Rs 252 Crore vide Offer for Sale.
“In the grey market, Shyam Metalics shares are quoting at a premium of ₹130 on June 11,2021. That means market is expecting Shyam Metalics IPO listing at around ₹433 to ₹436. However, the public issue GMP will keep on changing till its listing.”
Ravi Singhal , Vice President
GCL Securities
Company will utilised this fund for clearing debts for Shyam Metalics and its subsidiary SSPL. Allotment of shares is likely to take place on June 21, 2021. Initiation of refund will happen on June 22, 2021 while shares will be credited to demat account of allotees on June 23, 2021. and it is expected to be listed on stock market on June 24, 2021.
Currently, Shyam Metalics promoters hold 100 shares of the company that will go down at 88.35 per cent after listing.
The public issue is a book build issue with a face value of ₹10 per shares.
The Shyam metalics IPO’s issue size is Rs 909 Cr out of which Rs657 crore is a fresh equity issue and remain part is an offer for sale .
Its open for subscription between June 14, 2021 and June 16, 2021
The minimum lot size is 45 shares
The Share will be allotted around June 21, 2021.
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