Shyam Metalics IPO

Shyam Metalics and Energy Ltd.

₹13,635 /45 sharesMinimum Investment

Shyam Metalics IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
14 Jun ‘21 - 16 Jun ‘21₹13,63545₹303 - ₹306
Issue SizeIPO Doc
909.00Cr
RHP PDF

Subscription Status As on 16 Jun '21, 5:00 PM

  • Qualified Institutional Buyers
    155.71x
  • Non-Institutional Investor
    339.98x
  • Retail Individual Investor
    11.58x
  • Employees
    1.55x

About Shyam Metalics

Shyam Metallics is an integrated metal producing company in India. The company's focus is on long steel products and ferroalloys. According to the company's DRHP, the company is involved in pellet capacity and is the fourth-largest player in the sponge iron industry. The company's Sambalpur and Jamuria plants operate as ‘ore to metal’ integrated steel manufacturing plants. The Mangalpur plant comprises sponge iron and ferroalloy plants, and a captive power plant. The company has 8 captive power plants. The plants use non-fossil fuels, such as, waste, rejects, heat and gas that are generated from the company's operations itself. These are in turn used to produce electricity.;
Parent Organisation
Shyam Metalics and Energy Ltd.
Founded
2002
Managing Director
Brij Bhushan Agarwal
Shyam Metalics IPO review - Business, IPO date, financials, latest news | Upcoming IPO 2021

Strengths & Risks

  • Company recycles non-fossil fuels and waste products to generate electricity. This reduces their power cost.
  • Integrated manufacturing plants across the steel value chain giving greater control over operating margins
  • Manufacturing facilities are strategically located close to raw material sources
  • Diversified product mix
  • Loss of any supplier or a failure by suppliers to deliver primary raw materials can impact operations.
  • Demand and pricing in the steel industry is volatile
  • COVID-19 pandemic has impacted operations in the past and may impact in the future.
  • Business operations are on owned and leased premises.
  • Manufacturing plants and sources of raw materials primarily in eastern India only.
  • Required to pay damages to some suppliers of coal and chrome ore if the company fails to purchase a specified percentage from the supplier
  • No long-term agreements with customers.
  • Certain group companies have incurred losses in the past.
  • Shortage of essential utilities such as electricity and water could affect manufacturing operations.
  • Promoters will retain majority shareholding allowing them to exercise significant influence.
  • Stringent labour laws and labour unions may lead to slowdowns and increased wage costs.
  • Restrictions on import of raw materials and an increase in shipment cost may impact operations.
  • Portion of the proceeds may be utilized for repayment of loans taken from Axis Bank, ICICI Bank and SBI.
  • Major portion of revenues come from exports to limited markets.
  • Failure to comply with environmental laws could impact business and future earnings.

Financials

*All values are in Rs. Cr
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Application details

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