SEBI Approves Shyam Metalics IPO
Kolkata based long steel products and ferroalloy focused Shyam Metalics and Energy, which filed preliminary IPO papers with the capital markets regulator
Kolkata based long steel products and ferroalloy focused Shyam Metalics and Energy, which filed preliminary IPO papers with the capital markets regulator SEBI 27 February 2021, obtained its observation on May 11. Shyam Metalics and Energy Ltd received SEBI's approval to raise INR 1,107 crore through an initial public offering. According to the draft red herring prospectus, the IPO comprises fresh issuance of equity shares worth up to INR 657 crore and an offer for sale to the tune of IR 450 crore by existing shareholders. The company intends to utilise the net proceeds from the fresh issue for repayment or prepayment of INR 470 crore of its debt and that of its subsidiary, Shyam SEL and Power Ltd and for other general corporate purposes.
The portion reserved for qualified institutional buyers will be upto 50% of the offer, non-institutional investors to have upto 15% of the portion reserved while upto 35% will be reserved for the retail investors. Those participating in the OFS are Subham Capital, Subham Buildwell, Kalpataru Housefin & Trading, Dorite Tracon, Narantak Dealcomm and Toplight Mercantiles.
Shyam Metalics and Energy operates three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. The company sells thermo mechanically treated bars and structural products under the SEL brand name