The initial public offering (IPO) of Shyam Metalics & Energy has been subscribed 3.65 times on Tuesday, the second day of the bidding process.
The offer has received bids for 7.69 crore equity shares against the IPO size of over 2.1 crore equity shares, as per subscription data available on the exchanges at 5 pm.
The portion set for retail investors was subscribed 5.8 times and that of employees was 78 percent. The reserved portion of qualified institutional buyers was subscribed 81 percent and non-institutional investors 2.6 times.
The IPO size excluded the portion for anchor investors as the company had already raised Rs 2,498 crore from them on Friday.
The Rs 909-crore public issue comprises a fresh issue of shares worth up to Rs 657 crore and an offer for sale (OFS) of Rs 252 crore by existing shareholders. The three-day offer will close on June 16.
The OFS consists of a sale of shares worth Rs 37 crore by Subham Capital, Rs 63 crore by Subham Buildwell, Rs 30 crore by Dorite Tracon, Rs 97 crore by Narantak Dealcomm, and Rs 25 crore by Kalpataru Housefin & Trading.
The company has been able to report continuous and good financial and operational performance owing to increased productivity and cost reduction. Analysts have advised subscribing to the issue based on the company’s strong financial and operational performance.
"Shyam Metalics & Energy, with its operational efficiencies, stands to benefit as it will be nearly double its capacity slated to come onstream FY23E onwards, if not earlier," said Angel Broking.
First Published: IST