Shyam Metalics IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Shyam Metalics IPO

Shyam Metalics IPO: Key Details

  • Grey Market Premium (GMP) today: ₹130 – ₹145

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Shyam Metalics and Energy Limited, incorporated in 2002, is a leading integrated metal producing company in India with a focus on long steel products and ferroalloys. They are amongst the largest producers of ferroalloys in terms of installed capacity in India, as of Feb 2021. As of Mar31, 2020, they were one of the leading players in terms of pellet capacity and the fourth-largest player in the sponge iron industry in terms of sponge iron capacity in India.

They currently operate three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. As of Dec 31, 2020, their aggregate installed metal capacity was 5.71 million tonnes per annum (“MTPA”).

They primarily produce 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 132 alloys for special steel applications.

Competitive Strengths

  • Integrated operations across the steel value chain
  • Strategically located manufacturing plants supported by robust infrastructure resulting in cost and time efficiencies
  • Diversified product mix with a strong focus on value-added products, such as ferroalloys, association with reputed customers and robust distribution network
  • Strong financial performance and credit ratings
  • Experienced Promoters, Board and senior management team

Company Strategy

  • Continue to increase manufacturing capacities
  • Introduce new products by leveraging the forward integration capabilities
  • Continue to maintain low leverage with healthy capitalisation metrics
  • Continue to focus on cost efficiency and increase profitability and market share
  • Increase focus on exports

Proceeds from Shyam Metalics IPO will be used to:

  • Repayment and/or prepayment, in full or part, of debt of the Company and SSPL, one of the Subsidiaries; and
  • General corporate purposes

Shyam Metalics IPO: Financials

201820192020 Mar2020 Dec
Revenue from Ops₹3,842.6 Cr₹4606.4 Cr₹4362.9 Cr₹3933.1Cr
Profit before Excep*₹514.9 Cr₹763.9 Cr₹295.5 Cr₹506.3 Cr
Profit after Tax521.9 Cr₹641.8 Cr₹340.8 Cr₹460.2 Cr
EPS (Basic)18.1725.8614.5719.53
*Tax and Exceptional Items
As of March 2020EPS (Avg)P/E (Floor)P/E (Cap)
Based on basic EPS18.9316.0116.16

Comparison with listed industry peers

CompanyP/E (Cap)
Shyam Metalics16.16
Highest (Tata Steel)57.38
Lowest (SAIL)12.63
Sector Avg35.01

Shyam Metalics IPO Dashboard

Issue Details

TypeValue
Issue Size₹909 Cr
Fresh Issue657 Cr
Offer for Sale252 Cr
Face Value₹10/- per Equity Share
IPO Price₹303 – ₹306
Lot Size45 shares
LotsMin 1 – Max 14

Key Dates

Date TypeDate
Bid Open14/06/2021
Bid Close16/06/2021
Allotment Finalization21/06/2021
Initiation of Refunds22/06/2021
Credit of Shares23/06/2021
Listing Date24/06/2021

Lot Size and Price

LotsSharesAmount
145₹13,770
14630₹1,92,780

Promoter Holding

HoldingPercentage
Pre-Issue100 %
Post-Issue– %
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Shyam Metalics IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%59,40,889 shares
NII15%44,55,000 shares
RII (Retail)35%1,03,95,001 shares
Employees3,00,000 shares
Total100%2,10,90,890 shares

Shyam Metalics IPO: Risks

  • Loss of any of the key suppliers or a failure by suppliers to deliver some of the primary raw materials such as iron ore, iron ore fines, coal, chrome ore and manganese ore may have an adverse impact
  • Disruption of logistics and transportation services could impair the supply of raw materials and delivery of finished products which may adversely affect the operations
  • The demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves
  • The unexpected loss, shutdown or slowdown of operations at any of the manufacturing plants could have a material adverse effect on the results of operations and financial condition.
  • Inability to successfully implement the proposed expansion plans, including the proposal to enter the ductile pipe and aluminium foil business, could adversely affect the business

For complete internal and external risk factors, you can refer the DRHP of the company.

Shyam Metalics IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)
Selenium Building, Financial District, Nanakramguda, Serilingampally,
Rangareddi, Telangana India – 500 032.

Phone:040-332101000
Email: [email protected]

Lead Managers of the Issue

Axis Capital Limited
ICICI Securities Limited
IIFL Securities Limited
JM Financial Limited

SBI Capital Markets Limited

Phone: +91-22-4325 2183 / +91-22-6630 3030
Email: [email protected] 

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