Shyam Metalics and Energy is one of the largest producers of ferroalloys in India, on May 17 received the capital markets regulator Sebi’s approval for an initial public offering (IPO). The company is planning to raise Rs 1,107 crore through its IPO that comprises a fresh issue of Rs 657 crore and an offer for sale. The promoter and promoter groups, including Subham Capital, Subham Buildwell, Kalpataru Housefin & Trading, Dorite Tracon, Narantak Dealcomm, and Toplight Mercantiles, are looking to sell shares worth Rs 450 crore.
The offer also proposes to set aside up to 3 lakh equity shares for the Kolkata-based company’s employees.
Shyam Metalics filed its draft red herring prospectus (DRHP) on February 27, 2021.
The company intends to utilise the net proceeds from the fresh issue for repaying of debt of Rs 470 crore and for general corporate purposes.
The long steel products and ferroalloy focused company has been EBITDA positive since its operations in 2005 and sells intermediate and final products across the steel value chain catering to institutional and end-use customers through 42 distributors, brokers across 13 states and one union territory.
The company has three manufacturing plants in Sambalpur in Odisha and in West Bengal’s Jamuria and Mangalpur.
ICICI Securities, JM Financial, Axis Capital, IIFL Securities and SBI Capital Markets are the book running lead managers to the issue.