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Shyam Metalics and Energy Limited (SMEL) has fixed the price band for its forthcoming initial public offering (IPO) at ₹303 –306 per equity share of face value of ₹10 each. The company’s IPO will open on June 14 and close on June 16, 2021.
Size reduced
Kolkata-based Shyam Metalics, which is into production of long steel products and ferro alloys, has cut the size of its IPO to ₹909 crore, as against ₹1,107 crore planned earlier. The issue will comprise of a fresh issuance of equity shares, aggregating up to ₹657 crore and an offer for sale for up to ₹252 crore, by the selling shareholders.
The company proposes to utilise the net proceeds from the fresh issue towards repayment or prepayment of up to ₹470 crore of its debt and that of its subsidiary, Shyam SEL and Power Ltd and for other general corporate purposes, it said.
The group, which is a producer of intermediate and long steel products, such as, iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys products, is looking to diversify its product portfolio by entering into the segments, such as, pig iron, ductile iron pipes and aluminium foil.
To scale up production
The company is also looking to scale up production of ferrous products to 11.6 million tonne per annum from the current level of 5.7 mtpa in the next three-to-four years.
ICICI Securities, JM Financial, Axis Capital, IIFL Securities and SBI Capital Markets are the BRLMS to the offer.
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