Steel manufacturer Shyam Metalics & Energy is set to launch its initial public offer (IPO) on June 14. The company has fixed the price band for the issue at Rs 303-306 per share.
The Rs 909-crore public issue comprises a fresh issue of up to Rs 657 crore, and an offer for sale (OFS) up to Rs 252 crore by promoters. The company has reserved 3 lakh equity shares for employees and the eligible employees will get shares at a discount of Rs 15 per share to the final offer price.
The three-day offer will close on June 16. It will open for a day on June 11 for anchor investors.
The OFS consists of a sale of up to Rs 37 crore worth of shares 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.
Investors can put minimum bids for 45 equity shares and in multiples of 45 equity shares thereafter.
Out of the total issue size, the portion set aside for subscription by qualified institutional buyers is 50 percent. It is up to 35 percent for retail investors and remaining 15 percent for non-institutional investors.
The company proposes to utilise the proceeds from the fresh issue for repayment of debt and general corporate purposes.
ICICI Securities, Axis Capital, IIFL Securities, JM Financial and SBI Capital Markets are the book running lead managers to the issue.
Shyam Metalics and Energy Ltd is a leading integrated metal producer company and is primarily engaged in the production of long steel products and ferroalloys. The company is among the largest producers of ferroalloys in terms of installed capacity in India, as of February 2021.
The company currently operates three manufacturing plants located at Sambalpur in Odisha and Jamuria and Mangalpur in West Bengal. As of December 2020, the aggregate installed metal capacity of its manufacturing plants was 5.71 million tonne per annum (MTPA) (comprising of intermediate and final products).
Its manufacturing plants also include captive power plants with an aggregate installed capacity of 227 MW, as of December 2020.
“We have a positive outlook on the Shyam Metalics IPO, as the company is one of the least leveraged companies in the steel sector, having a working capital debt of Rs 682 crore and long term debt of Rs 182 crore,” said Yash Gupta, Equity Research Associate, Angel Broking.