Mumbai, June 15, 2021 (GPN): Shyam Metalics and Energy Limited (“SMEL”, including its subsidiaries and associates, the “Group”), one of India’s leading integrated metal producing company; received bids of 7,69,49,910 shares against the offered2,10,90,890 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors was subscribed 5.80 times. While the Qualified Institutional Buyer category was subscribed 0.81 times, the Non-Institutional Investor category was subscribed 2.60 times and Employee Reserved category was subscribed 0.78 times.

The total size of the offer is Rs. 909 crores at the upper price band of Rs. 306 per share.

The Company raised Rs. 269.94 crores through 21 anchor investors.

Key brokerage houses like Angel Broking, Canara Bank Securities, Hem Securities and Asit C Mehta,  IndSec Securities and Ventura have given recommendations of “Subscribe” to the issue for long term perspective while highlighting the key strengths of the company like (a) Integrated operations across the steel value chain (b) Strategically located manufacturing plants supported by robust infrastructure resulting in cost and time efficiencies (c) Diversified product mix with strong focus on value added products, such as, ferro alloys, association with reputed customers and robust distribution network (d) Strong financial performance and credit. The steel up cycle shall also help in increasing realizations per tonne. Furthermore, with the governments’ focus on infrastructure sector shyam steel is best placed to benefit from the same. Close proximity to the availability of raw materials is one of the most important factors in reducing the raw material costs.

ICICI Securities Limited, JM Financial Limited, Axis Capital Limited, IIFL Securities Limited and SBI Capital Markets Limited are the BRLMS to the Offer.

Company Information

The Group is a producer of intermediate and long steel products, such as, iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys products with a specific focus on high margin products, such as, customised billets and specialised ferro alloys for special steel applications. The Group is currently in the process of further diversifying its product portfolio by entering into the segments, such as, pig iron, ductile iron pipes and aluminium foil. The Group’s key strength lies in its integrated operations across the steel value chain and strategic locations of its manufacturing plants in Odisha and West Bengal which are well connected by railways, roadways and ports in the eastern region of India and are supported by infrastructure in terms of captive railway sidings and captive power plants.

The Group’s manufacturing plants at Sambalpur and Jamuria are forward and backward integrated, and the Group is present across steel value chain, offers a diversified product mix, and has strategic locational advantage. In the nine months ended December 31, 2020, power units produced from the Group’s captive power plants accounted for 79.58% of their total power units consumed. The Group has a wide distribution network partnered through 42 distributors across 13 states and one union territory in India, as of December 31, 2020. The Group’s domestic customers include Jindal Stainless Limited, Jindal Stainless (Hisar) Limited, and Rimjhim Ispat Limited and international customers include Norecom DMCC, Norecom Limited, POSCO International Corporation, World Metals & Alloys (FZC), Traxys North America LLC, JM Global Resources Limited, Goenka Steels Private Limited and Vijayshri Steel Private Limited.