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Shyam Metalics plans to reduce debt by 46% via IPO proceeds

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Shyam Metalics' IPO opened today (June 14) with a price band of Rs 303-306 per share. The leading integrated metal producing company focuses on long steel products and ferroalloys. CNBC-TV18 spoke to Brij Bhushan Agarwal, Vice Chairman and MD of the company to understand the objectives of the IPO and the outlook for FY22.

Shyam Metalics' IPO opened today (June 14) with a price band of Rs 303-306 per share. The leading integrated metal producing company focuses on long steel products and ferroalloys. CNBC-TV18 spoke to Brij Bhushan Agarwal, Vice Chairman and MD of the company to understand the objectives of the IPO and the outlook for FY22.
The company plans to reduce the debt on its book by lost 50 percent (46 percent) via the money raised from its Dalal Street debut.
“We have a long-term and short-term debt of around Rs 886 crore and out of that we are going to repay Rs 470 crore and approximately Rs 400 crore will be comprising of both long-term and short-term debt,” Agarwal said.
The company is confident of a good fourth-quarter performance on the EBITDA front.
On new capacity expansion, he said, “We have enough free cash so funding for new capacity will come from internal accruals. This growth from 5.7 to 11.6 is going to come in the span of 4-5 years. So every year we are going to do the capex and we are going to increase the capacity.” he broke down the plan.
For full management commentary, watch the video.