BackShyam Metalics files DRHP for ₹1,107 crore IPO
The offer comprises a fresh issue of ₹657 crore and an offer for sale of up to ₹450 crore. The proceeds from the issue will be used to repay up to ₹657 crore debt of the company and its arm SSPL
PremiumMumbai: Shyam Metalics and Energy Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India to raise nearly ₹1,107 crore through an initial public offering (IPO).
The offer comprises a fresh issue of ₹657 crore and an offer for sale of up to ₹450 crore, the DRHP said.
The proceeds from the issue will be used to repay up to ₹657 crore debt of the company and its arm SSPL.
ICICI Securities, Axis Capital, IIFL Securities, JM Financial and SBI Capital are the lead managers to the issue.
As of December 2020, the integrated metal producing company had a standalone debt of ₹381.12 crore, while SSPL had a debt of ₹398.60 crore. Consolidated debt of Shyam Metallics for the period stood at ₹886.29 crore.
For the nine month ended December 2020, Shyam Metalics reported a revenue of ₹3,933.08 crore against ₹3,283.09 crore. Net income for the period was at ₹456.32 crore versus ₹260.36 crore a year ago.
Shyam Metalics is based in Kolkata and is focussed on long steel products and ferro alloys.
The firm currently operates three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. As of December, 2020, the aggregate installed metal capacity of its manufacturing plants was 5.71 million tonne per annum. Its manufacturing plants also include captive power plants with an aggregate installed capacity of 227 MW.
Shyam Metalics said it is also in the process of increasing the existing capacities of manufacturing plants and captive power plants, which is expected to increase aggregate installed metal capacity from 5.71 MTPA, as of December, to 11.60 MTPA and captive power plants aggregate installed capacity from 227 MW to 357 MW. These proposed expansions are expected to become operational between fiscal 2022 and 2025.
The firm is also in the process of commissioning an aluminium foil rolling mill at Pakuria in West Bengal with a proposed installed capacity of 0.04 MTPA, which is expected to become operational in fiscal 2022.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
