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Shyam Steel Industries files DRHP for IPO

Rajesh Kurup Mumbai | Updated on June 04, 2019 Published on June 04, 2019

The IPO consists of a fresh issue of up to Rs 200 crore and an Offer for Sale of up to 6,670,000 equity shares

Kolkata-headquartered Shyam Steel Industries Ltd, a manufacturer of thermo mechanically treated rebar (TMT Rebar), has filed Draft Red Herring Prospectus (DRHP) for an Initial Public Offering (IPO).

While the company did not disclose the issue size, sources close to the development pegged it at Rs 500 crore. The company filed DRHP with market regulator on Tuesday.

The IPO consists of a fresh issue of up to Rs 200 crore and an Offer for Sale of up to 6,670,000 equity shares. The promoters will sell up to 1,160,300 shares and other shareholders will sell up to 5,509,700 shares through the issue, the firm said in a release.

Axis Capital, Edelweiss Financial Services, SBI Capital Markets and IIFL Holdings are the book running lead managers to the issue and Link Intime is the registrar.

Shyam Steel proposes to utilise the net proceeds from the IPO towards repayment and pre-payment of certain borrowings and general corporate purposes.

Shyam Steel is primarily involved in production of TMT Rebar with backward integration in sponge and billet and sale of premium TMT bars (long steel products) in India. The firm has all its steel manufacturing plants located in West Bengal.

The company has installed iron and steel production capacity of 1,584,656 MTPA, including an installed TMT Rebar production capacity of 641,960 MTPA.

Published on June 04, 2019
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